Vedanta cuts net debt by $2 billion in FY23 as funding woes linger

Vedanta Resources Ltd. has achieved half of its three-year planned reduction commitment of $4 billion in the first year, the London-based company said in an exchange filing

Anil Agarwal, Vedanta
Anil Agarwal
Swansy Afonso and Divya Patil | Bloomberg
2 min read Last Updated : Feb 15 2023 | 11:33 PM IST
Billionaire Anil Agarwal‘s commodities giant has slashed net debt by $2 billion in the current financial year as it seeks to soothe investor concern over its liquidity and ability to repay upcoming obligations.   

Vedanta Resources Ltd. has achieved half of its three-year planned reduction commitment of $4 billion in the first year, the London-based company said in an exchange filing. It will continue to deleverage from net debt of $7.7 billion in the next two financial years, it said.

The move comes after S&P Global Ratings last week flagged the company’s debt scores may “come under pressure” if it’s unable to raise $2 billion and/or sell its international zinc assets. In the absence of a significant fundraising, Vedanta Resources will be left with very little cash, the assessor said, adding that external funding “critical” for debt maturities after September.
The company plans to cover half of next financial year’s liquidity requirements internally and the rest through refinancing, according to the statement. The commodities firm is delivering healthy cash flows powered by robust Indian consumption, it said.

Parent firm pegged  bidder for bauxite  
 
Vedanta on Wednesday said that it has been declared as preferred bidder for Sijimali bauxite bock located in Rayagada and Kalahandi districts of Odisha.

“Vedanta Ltd has been declared as the preferred bidder for Sijimali bauxite block under the mineral block auction conducted by the government of Odisha,” the firm said in a filing to BSE.

 



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Topics :Vedanta ResourcesVedanta GroupAnil Agarwal Vedanta

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