Vedanta Resources to Slash $3 Billion in Debt Over Three Years
ECONOMY & POLICY

Vedanta Resources to Slash $3 Billion in Debt Over Three Years

Vedanta Resources, the UK-based parent company of Indian miner Vedanta Ltd, announced plans to reduce its debt by $3 billion over the next three years. Chairman Anil Agarwal revealed the ambitious deleveraging target in the company?s latest annual report released.

As of March 2024, Vedanta Resources carried a debt load of $6 billion. The company has faced several rating downgrades over the past year due to liquidity concerns and a heightened risk of default, raising alarms among analysts and investors.

"We seek to further deleverage Vedanta Resources by $3 billion over the next three years," Agarwal stated, highlighting the firm?s commitment to improving its financial health. This follows a significant debt reduction of $3.70 billion achieved over the last two years.

Agarwal also noted that the extension of the maturity of outstanding bonds worth $3.20 billion until fiscal 2029 has afforded the company "newfound liquidity." This enhanced liquidity is earmarked for "important capex projects," supporting the conglomerate?s strategic growth initiatives.

Vedanta Ltd, currently undergoing a planned demerger, is focusing on the operationalisation of coal blocks and expanding its steel and aluminium production capacities. The company has proposed a capital expenditure budget of $1.90 billion for fiscal 2025 to support these expansions.

As Vedanta Resources embarks on this significant debt reduction journey, it aims to strengthen its financial stability and sustain long-term growth amid a challenging economic environment.

Vedanta Resources, the UK-based parent company of Indian miner Vedanta Ltd, announced plans to reduce its debt by $3 billion over the next three years. Chairman Anil Agarwal revealed the ambitious deleveraging target in the company?s latest annual report released. As of March 2024, Vedanta Resources carried a debt load of $6 billion. The company has faced several rating downgrades over the past year due to liquidity concerns and a heightened risk of default, raising alarms among analysts and investors. We seek to further deleverage Vedanta Resources by $3 billion over the next three years, Agarwal stated, highlighting the firm?s commitment to improving its financial health. This follows a significant debt reduction of $3.70 billion achieved over the last two years. Agarwal also noted that the extension of the maturity of outstanding bonds worth $3.20 billion until fiscal 2029 has afforded the company newfound liquidity. This enhanced liquidity is earmarked for important capex projects, supporting the conglomerate?s strategic growth initiatives. Vedanta Ltd, currently undergoing a planned demerger, is focusing on the operationalisation of coal blocks and expanding its steel and aluminium production capacities. The company has proposed a capital expenditure budget of $1.90 billion for fiscal 2025 to support these expansions. As Vedanta Resources embarks on this significant debt reduction journey, it aims to strengthen its financial stability and sustain long-term growth amid a challenging economic environment.

Next Story
Infrastructure Transport

HG Infra Receives Key Bihar Project Approval from East Central Railway

HG Infra Engineering Ltd has recently received a crucial approval letter from East Central Railway (ECR) for a major railway project in Bihar. This development is expected to boost the company's growth prospects and strengthen its position in the infrastructure sector. The project involves significant infrastructure work, including the construction and enhancement of railway facilities in Bihar, a region known for its strategic importance in India?s rail network. The approval from ECR is a vital step in advancing the project, which is anticipated to contribute to improved transportation and re..

Next Story
Real Estate

Pune Railway Station to Get Heritage Redevelopment, Announces Minister

Railway Minister Ashwini Vaishnaw recently visited Pune Railway Station to announce a major redevelopment project focused on preserving and enhancing the station's heritage. The initiative aims to modernise the station while maintaining its historical charm and significance. The redevelopment project will involve extensive renovations and upgrades, including the restoration of historical architecture and the introduction of modern amenities. The plan includes enhancing passenger facilities, improving accessibility, and upgrading infrastructure to better handle the increasing passenger traffic..

Next Story
Infrastructure Energy

North Western Railway to Install 2 MW Rooftop Solar Power

The North Western Railway (NWR) is set to enhance its sustainability efforts by installing 2 megawatts (MW) of rooftop solar power across its facilities. This initiative marks a significant step in the railway's commitment to reducing its carbon footprint and embracing renewable energy sources. The project will involve the installation of solar panels on the rooftops of various railway buildings, including stations and administrative offices. By harnessing solar energy, the railway aims to offset a substantial portion of its electricity consumption, leading to both cost savings and environment..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000