The company plans to spend Rs 20,000 crore on capex in FY25,
funded mainly by cash generation. It does not plan to raise funds via equity
issue, like group company JSW Energy.
Sajjan
Jindal-led JSW Group’s steel manufacturing company, JSW
Steel, expects domestic demand to remain strong on hopes that
capital expenditure will pick up post elections in India, Joint Managing
Director and CEO Jayant Acharya told Moneycontrol in an interview.
JSW Steel
will spend Rs 20,000 crore as part of an ambitious plan to scale up its
capacities to 50 million tonnes by FY31. The company hopes to finance this from
internal cash generation and has no plans of raising funds through an equity
issue, even though it has taken an enabling resolution for the same from the
board.
The
company’s net profit plunged 64.5 percent year-on-year (YoY) to Rs 1,299 crore
in Q4FY24 due to higher coking coal prices, and lower realisation due to weaker
domestic steel prices. But Acharya is not perturbed as he expects some
correction in raw material prices going ahead.
The company
has decided to acquire a coking coal mine in Mozambique and is looking for more
opportunities to secure its raw materials, Acharya said.