Vedanta Resources Ltd, a global natural resources company, announced on Thursday that it achieved remarkable financial results in the fiscal year 2022-23. The company reported an impressive EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4.6 billion, marking its second-highest EBITDA to date. Additionally, the company generated a pre-capex free cash flow of $2.8 billion, which represents its highest cash flow figure on record.
According to a statement released by the company, these outstanding financial achievements were accompanied by a significant improvement in the company’s balance sheet position. The company’s gross debt decreased from $9.8 billion to $7.8 billion over the twelve-month period ending in March 2023. The company further reduced its debt to $6.4 billion by the end of May 2023, as part of its ongoing deleveraging strategy.
The company emphasized its expectation for continued progress in its capital structure, citing the robust EBITDA and free cash flow estimates for the fiscal year 2023-24. In line with its commitment to managing its balance sheet effectively, the company stated that it had prepaid all maturities for the first quarter of FY24. With no significant maturities expected in the next six months, the company is now focused on addressing its obligations for 2024 and beyond, expressing full confidence in meeting all future maturities in a timely manner.
Headquartered in London, Vedanta highlighted its enthusiasm for capitalizing on India’s exceptional growth and the increasing demand for its diverse range of products, most of which are experiencing double-digit growth rates. The company holds a 68% stake in Vedanta Ltd, as well as a 79% stake in Konkola Copper Mines, a significant copper deposit in Africa.
The significant improvement in Vedanta’s balance sheet is an encouraging development. Over the course of twelve months, the company successfully reduced its gross debt from $9.8 billion to $7.8 billion by March 2023. Furthermore, Vedanta’s continued deleveraging efforts resulted in a further decrease to $6.4 billion by the end of May 2023, reinforcing its commitment to sound financial management and debt reduction.
With its solid financial performance and positive cash flow, Vedanta anticipates further improvements in its capital structure. The company projects robust EBITDA and free cash flow estimates for the fiscal year 2023-24, laying the foundation for sustained growth and profitability.
Vedanta’s proactive approach to managing its balance sheet is evident in its prepayment of all maturities for the first quarter of FY24, ensuring that it remains on track to meet its financial obligations. With no significant maturities expected in the coming months, the company is now focused on addressing its obligations for 2024 and beyond. Vedanta expresses full confidence in its ability to meet these future maturities promptly, underscoring its commitment to financial prudence and stability.
Headquartered in London, Vedanta is keen to leverage the immense growth opportunities presented by India’s thriving economy. The company acknowledges the exceptional demand for its diverse range of products, spanning zinc, aluminium, oil & gas, silver, copper, iron ore & steel, and battery metals. These products play a vital role in various sectors, and Vedanta is well-positioned to meet the growing needs of its customers.
Vedanta’s stake in Vedanta Ltd, as well as its ownership of a significant portion of Konkola Copper Mines, positions the company as a key player in the global natural resources industry. It allows Vedanta to tap into the vast potential of India’s exceptional growth trajectory and contribute to the nation’s economic development.
Looking ahead, Vedanta remains committed to effective balance sheet management and capitalizing on emerging opportunities. The company’s continuous efforts to optimize its operations, strengthen its financial position, and adapt to changing market dynamics ensure that it remains at the forefront of the natural resources sector.
As Vedanta progresses, it continues to prioritize effective balance sheet management and leverage its strengths to sustain growth and profitability. The company’s successful financial results position it as a leading player in the global natural resources sector, poised to capitalize on India’s upward trajectory and contribute to the nation’s economic development.
