Vedanta in a more comfortable position to manage debt, says chairman Anil Aggarwal

As of December 31, 2023, Vedanta's net debt stands at Rs 62,493 crore.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Mining major Vedanta is in a comfortable position to manage its debt, cushioned by the $1.3 billion loan availed by the company along with the dividend and royalty gains that it will earn, the chairman of Vedanta Resources told Moneycontrol in an exclusive interview on the sidelines of the second edition of the India Energy Week.

Last year, media reported that Vedanta was in talks with Standard Chartered Bank for a loan of $1.2 billion - $1.3 billion against brand fee receivables. However, Aggarwal did not disclose further details on the loan sanctioned.

"We have 5 years, in 5 years we have to pay the entire debt and that should be more comfortable for us what we get a dividend, what we get the royalty should be more than enough for us to clear this," Aggarwal said.

The company is now betting on the dividends, royalty, and cash raised from the sale of non-core assets to repay lenders. VRL received a total dividend payout of $2.5 billion in FY23. It received a brand fee of $327 million in FY23 from Vedanta Ltd, Hindustan Zinc, and other subsidiaries.

Vedanta Ltd's royalty fee was hiked to 3 percent in 2023 from 2 percent paid earlier.

Also read: Vedanta’s oil unit to invest $4 billion to boost exploration, says Chairman Anil Agarwal

According to an investor presentation from September, the company's total outstanding loans account for $2.2 billion while total outstanding bonds are worth $3.7 billion. Last month, the mining company received investor consent to restructure outstanding corporate bonds.

As of December 31, 2023, the company's net debt stands at Rs 62,493 crore.

Meanwhile, the company received inquiries from domestic and international players for its non-core assets,  chief financial officer Ajay Goel told analysts in a post-earnings call, reinforcing that the company's intention to dispose of the assets remains intact.

Also read: MC Exclusive | No child’s play, but India need to set up semiconductor capacity: Vedanta Chairman

In the October-December quarter, Vedanta posted an 18 percent fall in net profit burdened by finance costs. Its finance costs rose more than 50 percent to Rs 2,417 crore due to higher borrowing costs.