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JSW Steel Cuts FY25 Capex Plan

JSW Steel reduces FY25 capex, defers expansion.

Published

3 weeks ago

October 30, 2024

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JSW Steel has announced a substantial reduction in its capital expenditure (capex) plan for FY25, slashing it by up to Rs 4,000 crore as part of a strategic re-evaluation of ongoing and future projects. The steel giant decided to defer its Vijayanagar plant’s Blast Furnace 3 expansion, a major project originally slated to significantly boost its production capabilities. The move is largely driven by cost-control measures in response to changing economic and market conditions within the steel industry.

The original capex plan, designed to fuel growth and meet the projected demand surge in India and overseas, has been adjusted as JSW Steel takes a cautious approach to capital allocation. The deferred Vijayanagar expansion would have included adding substantial capacity at one of India’s largest steel manufacturing facilities. However, the company’s revised strategy now prioritizes optimizing current assets and enhancing operational efficiency over new expansions, signaling a focus on financial stability amid fluctuating market dynamics.

This capex reduction reflects JSW’s strategic pivot in response to global economic pressures, aiming to maintain a resilient balance sheet and manage expenditures while still achieving core operational goals. The company emphasized that while certain high-capex initiatives are on hold, it remains committed to completing essential projects to support the growing infrastructure demand, especially in domestic markets.

The capex adjustment aligns with broader trends in the steel sector, where companies are recalibrating their investment strategies due to rising input costs and market uncertainties. By scaling back and focusing on current facilities, JSW Steel aims to bolster its financial position, ensuring sustainable growth in a challenging environment.

The deferral of the Vijayanagar blast furnace expansion illustrates the company’s adaptability and focus on long-term growth. This strategic shift is expected to maintain JSW’s stronghold in the Indian steel industry while positioning it to capitalize on future growth opportunities with a leaner, more flexible financial approach.

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India’s April-October Finished Steel Imports Reach 7-Year High

India is the world’s second-largest crude steel producer, had become a net importer in 2023/24.

Published

6 days ago

November 15, 2024

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India’s finished steel imports during April-October reached a seven-year high of 5.7 million metric tons, according to provisional government data reviewed by Reuters on Wednesday.

India, the world’s second-largest crude steel producer, had become a net importer in 2023/24, and this trend continued during the April-October period, the data indicated.

From April to September, China had been the leading exporter of finished steel to India, and this was widely expected to remain the case during the April-October period. Further details would be revealed later in the month.

A senior government official had informed Reuters last month that India’s steel ministry was in favor of implementing a safeguard duty or a temporary tax to curb the rising imports of steel.

India’s steel demand remained strong, primarily driven by infrastructure and the automotive sector, although it had slowed down in the United States and Europe.

The consumption of finished steel in India reached a seven-year high of 85.7 million metric tons during April-October, according to the data. Meanwhile, India’s finished steel exports during this period slumped to their lowest in seven years, totaling 2.8 million metric tons. The country’s finished steel production amounted to 82.7 million metric tons, marking a 4.4% increase compared to the previous year. Crude steel production stood at 84.9 million metric tons, reflecting a 3% year-on-year rise.

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NMDC Steel Q2 loss expands to Rs 5.95 bn, income at Rs 15.35 bn

The company had reported a loss of Rs 131.10 crore during the same period last year.

Published

6 days ago

November 15, 2024

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NMDC Steel announced on Tuesday that its loss had widened to Rs 595.37 crore in the September quarter, primarily due to a surge in expenses. The company had reported a loss of Rs 131.10 crore during the same period last year, according to an exchange filing.

The company’s total income increased to Rs 1,535.46 crore, up from Rs 290.27 crore a year earlier. However, NMDC Steel’s expenses escalated to Rs 2,364.39 crore in the second quarter of the current fiscal year, compared to Rs 464.93 crore in the corresponding period of the previous year.

NMDC Steel Ltd, which was demerged from the mining firm NMDC, owns and operates the 3 million-tonne Nagar Steel Plant at Nagarnar in Chhattisgarh. The Nagarnar plant, set up with an investment of about Rs 23,000 crore, is referred to as India’s youngest steel unit. NMDC Steel commenced commercial operations at this unit on August 31, 2023.

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Shalimar Paints reports a net loss of Rs 196.2 Mn in Q2 FY25

It had registered loss after tax of Rs 252.2 million in the corresponding quarter of the previous fiscal.

Published

7 days ago

November 14, 2024

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Shalimar Paints has reported net consolidated loss after tax of Rs 196.2 million during the quarter ended September 30, 2024.

It had registered loss after tax of Rs 252.2 million in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 1.46 billion in Q2 FY25, a growth of 20.15% from Rs 1.21 billion it recorded in the similar quarter last year.