Mining conglomerate Vedanta is aiming to reduce its standalone debt by $3 billion over the next three years, an investor presentation released after an analyst meeting on February 27 said.
As of December 31, 2023, the company's net debt stood at Rs 62,493 crore (around $8 billion).
"We're well-positioned for exponential near-term growth, with projected annual EBITDA exceeding $7.5 billion," said Navin Agarwal, Vice Chairman of Vedanta.
Vedanta anticipates an EBITDA of approximately $6 billion in FY25, with a growth rate exceeding 35 percent.
Earlier this month, Vedanta Resources Chairman Anil Aggarwal highlighted the company's ability to manage its debt, citing a $1.3 billion loan and anticipated dividend and royalty gains. This was revealed in an exclusive interview with Moneycontrol during the India Energy Week.
Last year, media reports suggested Vedanta was in discussions with Standard Chartered Bank for a loan of $1.2 billion to $1.3 billion against brand fee receivables. However, Aggarwal did not provide further details on the loan.
The company is banking on dividends, royalties, and proceeds from the sale of non-core assets to repay lenders. Vedanta Resources Limited (VRL) received a total dividend payout of $2.5 billion in FY23 and a brand fee of $327 million from Vedanta Ltd, Hindustan Zinc, and other subsidiaries.
In 2023, Vedanta Ltd's royalty fee increased to 3 percent from the previous 2 percent.
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