JSW Steel plans Rs 47,457 cr capex in 3 years, to expand capacity to 38 MTPA by 2024
The new project of JSW steels will cost Rs 25, 115 crore , while the ongoing investments, including doubling of capacity at Dolvi in Maharashtra to 10 MTPA, will require Rs 22,342 crore.
JSW steels is the most valuable steel company is planning to spend Rs 47 , 457 crore towards capital expenditure in next three years primarily for adding 5 million tonnes per annum (MTPA) steel making capacity at Vijayanagar, Karnataka, and building mining infrastructure in Odisha.
The new projects will cost the company Rs 25,115 crore, while the ongoing investments, including doubling of capacity at Dolvi in Maharashtra to 10 MTPA, will require Rs 22,342 crore.
Seshagiri Rao, joint managing director and group chief financial officer, JSW Steel said Dolvi expansion will be completed by July and the plant will be fully integrated by September. The coke oven plant commenced production in February, while pellet plant was commissioned in March. The hot strip mill also started rolling from March. The completion of blast furnace and steel melting shop have been delayed because of COVID-19 disruptions.
JSW Steel targets to expand its capacity to 38 MTPA by 2024 from the present 23 MTPA (including the recently acquired Monnet Ispat and Bhushan Power and Steel). Tata steel, the other major steelmaker in India, has 20.2 MTPA domestic capacity, including 5.2 MTPA of Tata Steel BSL (formerly Bhushan Steel). It is also expanding its capacity in Kalinganagar to 8 MTPA from 3 MTPA.
JSW Steel plans to expand its capacity by 5 MTPA at Vijayanagar plant to 17 MTPA at a capex of Rs 15,000 crore. In Odisha, the steel company has four operstinal iron ore mine in leases. The company will spend Rs 3,450 crore towards mining infrastructure.
JSW Steel posted a consolidated net profit of Rs 7,873 crore in 2020-21, compared to Rs 3,919 crore a year ago. High prices of steel and the increasing demand for value added and special products helped the company in boosting the bottom line, Rao said. The operational revenue was Rs 79,839 crore, higher from Rs 73,326 crore a year ago.
The company has a net debt of Rs 52,615 crore, post Rs 19,350-crore acquisition of the bankrupt Bhushan Power in March. The net debt to equity of the company stood at 1.14 times, while net debt to EBITDA was at 2.61 times.
Source : Business Today
Image source : Business Today