Metals & Mining News

vedanta: Vedanta looks to cut debt by up to $2 billion

Resources conglomerate Vedanta will seek to cut debt by up to $2 billion in the next fiscal as it focuses on generating free cash flow by managing costs and enhancing volumes, chief financial officer Ajay Goel told ET.

The Anil Agarwal-owned company is also looking at generating operating profit of $7 – $7.5 billion in FY25.

“As a company, we have many priorities, but all other priorities remain subservient to the priority of deleveraging,” Goel told ET in an exclusive interaction.

The natural resources major had a gross debt of ₹75,227 crore – or more than $9 billion – as of December-end. Net det was ₹62,493 crore – just shy of $8 billion. Last year, Vedanta had also announced it is looking to sell its steel business. Goel said that the process for the asset sale is underway, and that Vedanta will have a “firm proposal” by the end of the current quarter, and the deal is likely to be finalised by April-May. The company acquired Electrosteel Steel through the insolvency process in 2018.

Vedanta’s targeted operating profit of $7 – $7.5 billion in 2024-25 (April-March) will be underpinned by its various debottlenecking projects, along with higher volumes and a reduction in co-sts. The company has factored in volumes growing by 7-8% next year, an uptick of around 5% in prices next year.

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