Vedanta Resources Ltd.
Vedanta Resources Limited 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 on Wednesday. It added it will continue to reduce its $7.7 billion net debt during fiscal 2024 and 2025.
Vedanta has cut its net debt by $2 billion in the last 11 months. In the absence of significant fundraising, the assessor said Vedanta Resources will be left with very little cash, adding that external funding is “critical” for debt maturities after September.
The company said it had brought down debt significantly, seeking to allay market concerns after S&P Global Ratings last week raised doubts about its ability to meet financial obligations beyond September.
The London-based company also added it plans to cover 50% of its liquidity requirements for fiscal 2024 internally and the rest through refinancing.
The billionaire Anil Agarwal-owned Vedanta Resources parent of Indian resources giant Vedanta Limited said it has a healthy cash flow boosted by robust domestic consumption and that growth would be propelled by its associate firms’ investments into semiconductors, display glass, renewables, optical fiber, and transmission.
Vedanta Ltd, which mines zinc, silver, and aluminium and drills for crude, reported a 41% slump in third-quarter profit in January, hit by a fall in commodity prices.
Vedanta Resources’ statement also comes at a time when Indian conglomerate Adani Group is still battling the fallout from a U.S. short-sellers critical report on its business practices that has wiped off $120 billion from its market value.
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