JSW Steel Ltd., India's biggest steelmaker by capacity, plans to spend as much as 240 billion rupees ($2.5 billion) in the coming year as the nation's infrastructure push drives demand for steel and mill expansions.
That's up to a roughly 50% increase compared with capital expenditure for the year through March 2026, according to an earnings statement on Thursday. The Mumbai-based company plans to expand steel capacity to 48.8 million tons a year by 2030, from 31.9 million tons now.
India is investing in infrastructure as Prime Minister Narendra Modi's government steps up spending to accelerate an overhaul of transport and logistics networks. The country has channeled billions into highways, ports and airports as it seeks to lift growth in the world's most populous nation and meet its goal of becoming a developed economy by 2047.
The steelmaker's net income in the three months through March massively beat analyst expectations, jumping to 163.7 billion rupees amid a one-time gain of about 179 billion rupees. Revenue rose 14% year-on-year to 511.8 billion rupees.
Looking ahead, JSW Steel pointed to inflation risks as the war in the Middle East keeps energy prices high.
“Prolonged supply chain disruption and consequent inflation due to the Middle East crisis could be a key risk to growth,” it said in a statement.
The company's board has approved a 5 million tons-per-annum brownfield expansion at one of its steel subsidiaries, with capital expenditure of 260 billion rupees and commissioning planned by the 2030 financial year, it said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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