Vedanta Demerger: 'To be completed by...' - Chairman Anil Agarwal on company's earnings, deleveraging

vedanta demerger: ‘to be completed by…’ – chairman anil agarwal on company’s earnings, deleveraging

Vedanta Demerger: “FY25 will be a transformative year for us on many fronts as we prioritise disciplined growth, operational excellence, and exploring opportunities along the value chain,” he said.

The Chairman also said that the company prioritizes disciplined growth while eyeing a $3 billion deleveraging in the next three years, according to a PTI report which cited a letter to shareholders by the metals and mining sector giant. The Chairman also said in the letter that the group will pursue sustainable growth while maintaining a healthy balance sheet. Agarwal also mentioned that the company is eyeing an annual group EBITDA of $7.5 billion within 2 years.

“These include further deleveraging (parent) Vedanta Resources by USD 3 billion in the next 3 years and achieving an annual group EBITDA of USD 7.5 billion within 2 years,” Agarwal said.

Vedanta Demerger Timeline

Earlier in 2023, the metals and mining sector behemoth informed the bourses on September 29, about the creation of independent verticals via a demerger. The company said in its release that it will conduct a demerger of its metals, power, aluminium, and oil and gas businesses. The company also informed the bourses that as part of the vertical split shareholders will get 1 share of each of the five newly listed companies for every share of Vedanta. The Chairman added that the demerger is expected to be completed by December 2024.

“The demerger will promote each company to leverage its own independent strengths and attract targeted investments, ultimately driving sustainable growth and long-term stakeholder value creation,” Agarwal said in his letter.

Anil Agarwal on Vedanta’s Achievements

Agarwal also highlighted the company’s achievements in FY24 and said that Vedanta achieved its highest-ever annual aluminium production of 2.37 million tonnes. He also talked at length about other achievements such as the Lanjigarh refinery being expanded to 5 million tonnes.

“….This success is underpinned by our ongoing vertical integration efforts, solidified by the expansion of the Lanjigarh refinery (now 3.5 million tonnes per annum capacity) and ramp up of captive coal mines,” he said.

The Chairman also mentioned in his letter that the company’s iron ore business delivered its highest ever volume of 5.9 million tonnes.

“This year (FY24) saw the iron ore business deliver its highest-ever volume of 5.9 million tonnes. We also operationalised the Bicholim mine in Goa (3 million tonnes per annum capacity), marking the commencement of the first mining operation in the region in nearly five years,” Agarwal said.

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