Growth capex to stay despite slow demand; JSW hopes for a rebound in Q3

A combination of factors made the operating environment in Q1 challenging

JSW Steel, the country’s largest steel producer, is scaling down its capex for FY23 in the wake of falling steel prices and slowing demand, but the axe will not fall on growth projects.

The planned capex for FY23 was Rs 20,000 crore and this is being calibrated to Rs 15,000 crore. This is part of an overall Rs 47,457-crore capex that JSW has lined up over FY22-FY24, which includes expanding capacity from 27 million tonnes (mt) to 37 mt in India. It will be completed by FY25.

Seshagiri Rao, joint managing director (joint MD) and group chief financial officer (group CFO), JSW