Vedanta Resources plans to trim debt by $3 billion over three years

Vedanta Ltd has planned a capex of $1.9 billion and intends to reduce the working capital requirement

Mining major Vedanta Limited informed investors in its latest annual report that Vedanta Resources, the UK-based parent entity will look to reduce debt by $3 billion over next three years. The company expects a disciplined capex across its projects to generate healthy return on capital (ROCE).

The debt on Vedanta Resources' books stands at $6 billion as of FY24, weighing down the company with host of rating downgrades. Analysts tracking the company have been flagging liquidity issues. In the last two years, Vedanta Resources has managed to cut its debt by $3.70 billion.

For FY25, Vedanta Ltd has planned a capex of $1.9 billion and intends to reduce the working capital requirement, it said.

Vedanta Ltd is in the middle of an ongoing demerger and plans to expand capacities for steel and aluminium business.

In the annual report, Vedanta has forecast its aluminium business to generate over $4 billion in EBITDA, and expects the expansion of BALCO to be commissioned in H2FY25.

The company is hopeful of monetisation of steel and raw materials business, and expects it be completed by H1FY25.

Hindustan Zinc has projected a 20 percent year-on-year rise in domestic sales for this fiscal.

The company is aiming to operationalise the captive coal blocks in Radhikapur West and Kuraloi North, both in Odisha, this financial year.

Over the next two years, two new thermal power projects will commence operations, Vedanta added.