Vedanta reduces debt by $2 billion in this fiscal year

16 Feb 2023 , 07:57 AM

The commodities juggernaut of Anil Agarwal has reduced net debt by $2 billion in the current fiscal year in an effort to allay market worries about its liquidity and capacity to meet forthcoming obligations.

According to a filing with the stock exchange, Vedanta Resources Ltd. has already reduced $4 billion of its debt. In the upcoming two fiscal years, it promised to keep paying down its $7.7 billion net debt.

The action was taken after S&P Global Ratings warned last week that if the company couldn’t raise $2 billion or sell its foreign zinc assets, its debt ratings may ‘come under pressure.’ Vedanta Resources will have very little cash on hand in the absence of a sizable fundraising, the assessor said, calling outside funding ‘essential’ for debt maturities after September.

According to the statement, the company intends to finance domestically half of its liquidity needs for the upcoming fiscal year and refinance the remaining balance. According to the commodities company, healthy cash flows are being generated by brisk Indian consumption.

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