Vedanta Resources, the UK-based parent company of Indian miner Vedanta Ltd, is taking steps to reduce its debt by a significant $3 billion over the next three years. This announcement came from the chairman, Anil Agarwal, in the company’s annual report.
As of March 2024, Vedanta Resources had a total debt of $6 billion, which has led to several rating downgrades due to concerns about liquidity and default risk. To address these issues, the company is committed to deleveraging by $3 billion in the coming years.
Over the past two years, Vedanta Resources has successfully reduced its debt by $3.70 billion, demonstrating its dedication to improving its financial position. Anil Agarwal highlighted the extension of outstanding bonds worth $3.20 billion until fiscal 2029, which has increased the company’s liquidity and provided the necessary funds for essential capital expenditure projects.
Vedanta Ltd, currently undergoing a demerger process, has ambitious plans for the future. The company aims to maximize the operational potential of its coal blocks and enhance the capacities of its steel and aluminium businesses. To support these goals, Vedanta Ltd has allocated $1.90 billion for capital expenditure in fiscal 2025.
This strategic approach towards debt reduction and investment in key areas reflects Vedanta Resources’ commitment to long-term growth and sustainability. By addressing financial challenges and focusing on operational efficiency, the company is positioning itself for success in the competitive mining and metals industry.
As Vedanta Resources continues its journey towards financial stability and expansion, investors and stakeholders can expect to see positive developments that will further strengthen the company’s position in the market. With a clear roadmap for debt reduction and strategic capital expenditure, Vedanta Resources is poised to achieve its objectives and drive value for all stakeholders involved.
