Billionaire Anil Agarwal-owned Vedanta Resources on Monday announced that it has reduced its gross debt burden by $1 billion to $6.8 billion and the robust commodity prices would lead to further deleveraging.
The debt-laden Vedanta Resources in February 2022 announced its intention to accelerate deleveraging. Since then, the company has reduced its debt cumulatively by $3 billion. At the end of March 2022, Vedanta Resources debt stood at $9.7 billion.
“Vedanta’s gross debt stands at $6.8 billion as of today, down from $7.8 billion at the end of March 2023 (as announced on 15th February) and down from $9.7 billion at the end of March 2022,” London Stock Exchange-listed Vedanta Resources Limited said in a regulatory filing.
Vedanta Resources is the parent company of Vedanta Limited, India’s largest natural resources company. In February 2022, Anil Agarwal-led firm set a target to reduce its debt by $4 billion within 3 years.
“During the balance of FY24, we believe that strong operational performance from our world-class asset base coupled with robust commodity prices will lead to further deleveraging at Vedanta,” Vedanta Resources said.
Moody’s Investors Service last month downgraded Vedanta Resources Limited (VRL) corporate family rating (CFR) to Caa1 from B3.“The rating downgrades reflect the increasing refinancing risk surrounding holding company VRL’s large debt maturities. Ongoing delays in holdco VRL’s refinancing efforts and its continued reliance on dividend receipts are depleting liquidity at its operating subsidiaries,” Moody’s had noted in its report.