Cement firms raise FY23 capex amid cost pressure, aluminium cos trim plans

While UltraTech, ACC, Ambuja intend to go ahead with capex, Analysts point to volatility in global aluminium prices for Vedanta arm's revised capex guidance

Companies in the cement and aluminium sectors are showing a divergence in their capital expenditure plans for the current financial year (FY23). While firms such as UltraTech, ACC and Ambuja remain committed towards their annual capex activities despite cost pressures, the aluminium division of Vedanta has revised its capex guidance for the year by 40 per cent.

Vedanta's investor presentation for the September quarter (Q2) shows that the company has trimmed its capex guidance for the aluminium and power division from $1 billion indicated earlier to $0.6 billion now. This has impacted its overall capex guidance for FY23, which is down