InvestorQ : Why has Tata Steel capex plan got stuck in this year?
sarah Leo made post

Why has Tata Steel capex plan got stuck in this year?

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Rashi Mehra answered.
3 weeks ago
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No it is not stuck; it is just that the pace has slowed due to tough market conditions. For instance, Tata Steel CEO TV Narendran had recently acknowledged that it had spent less than half its capex target for FY23 till date. The original capex plan was Rs12,000 crore comprising Rs8,500 crore for the India business and Rs3,500 crore for the Europe business during FY23. Across the world, the steel business is hit by the recession and the inflation driven input cost concerns.

In the September 2022 quarter, Tata Steel reported 85% fall in net profits on yoy basis. However, the company has reassured the media and the investors that its capex plan will meet the target by the end of the current fiscal year.

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