India’s JSW Steel Limited will slash capital expenditure for the current fiscal year 2022-23 to the tune of $625 million owing to lower cash generation during the first quarter (April-June) of the year, a company official said on Monday, July 25.
The official said that the capital expenditure planned at the start of the year at $2.5 billion would now be down to $1.87 billion for the year which, though lower than initially planned, is on a par with capital expenditure in the previous fiscal year.
“The cash generation during the first quarter was much lower than what was planned. We are now putting on hold discretionary capex and that for special projects, while there will be no changes in normal capex and our long-term investment plans for next two years. We will review this cut two quarters down the line,” JSW Steel joint managing director & group CFO Seshagiri Rao said.
Last week, the company reported an 85.8 percent decline in consolidated net profit to $105 million for the first quarter of fiscal year 2022-23.