In terms of managing debt, Chairman Anil Aggarwal said Vedanta is in a more comfortable situation

In terms of managing debt, Chairman Anil Aggarwal said Vedanta is in a more comfortable situation

In addition to relying on dividends, royalties, and proceeds from the sale of non-core assets to pay back lenders, the corporation has obtained $1.3 billion via debt.

Given the $1.3 billion loan the mining giant took out as well as dividends and royalties, mining firm Vedanta is well-positioned to handle its debt, the chairman of Vedanta Resources said in an exclusive interview with Moneycontrol. The second India Energy Week is scheduled.

Vedanta was reportedly in negotiations with Standard Chartered Bank last year for a loan of between $1.2 and $1.3 billion secured by brand fee revenues. Agarwal did not, however, provide any further information on the approved loan.

"We have five years to repay the entire loan, and the dividend and royalty we receive should be more than enough to make it comfortable for us to do so," said Aggarwal.

In order to pay back loans, the corporation is now counting on dividends, royalties, and money from the sale of non-core assets. In FY2013, dividend payments to VRL totaled $2.5 billion. In FY2013, Vedanta Limited, Hindustan Zinc, along with other subsidiaries paid it $327 million in brand fees.

The royalty charge paid by Vedanta Ltd. was raised from two percent to three percent in 2023.

According to a September investor presentation, the business has $2.2 billion in total outstanding debt and $3.7 billion in total outstanding bonds. Investor approval was obtained by the mining business last month to restructure existing corporate debts.

As of December 31, 2023, the firm has net debt of Rs 62,493 crore.

Chief Financial Officer Ajay Goyal informed investors during a post-earnings conference that the business has received queries regarding its non-core assets from both local and foreign companies, reaffirming the company's plan to sell the assets. As.

The weight of financing expenses caused Vedanta to report an 18% fall in net profit for the October–December quarter. Higher borrowing rates caused its financing expenses to rise by almost 50%, to Rs 2,417 crore.