Opportunities in geopolitics and geoeconomics changes, says Agarwal
Vedanta 2.0 will have a key role in each of the most crucial levers of the economy, said Anil Agarwal, Chairman, Vedanta Resources Limited (VRL), saying there are opportunities amidst the big changes in geopolitics and geoeconomics.
“The world around us is moving fast. There are big changes in geopolitics and geoeconomics. Some may view them as a challenge. We view them as opportunities,” he said in a market outlook as the company reported record revenue of US$18.2 billion, up 6% YoY and its second-highest consolidated EBITDA of US$5.5 billion, up 16% YoY, with EBITDA margin1 rising to an industry-leading 36%.
Free cash flow post-capex totalled US$1 billion, while cash and cash equivalents stood at US$2.6 billion.
The company’s Indian subsidiary, Vedanta Limited (NSE: VEDL), is undergoing a demerger process. Once completed, it will result in four independent, sector-focused, and globally scaled entities. The demerger was approved by shareholders and creditors with over 99.5% voting in favour.
Looking ahead, he sounded bullish, “For Vedanta, this is the right moment to transform itself into a natural resources, energy and technology company. We are also in the process of demerging our business verticals to create a pure play model, which is nimble and fine-tuned to even faster growth and unlocking of massive value.”
Vedanta, the world’s leading transition metals, critical minerals, energy and technology company, delivered robust growth in revenue and EBITDA driven by favourable commodity prices, higher premiums, and operational efficiencies.
VRL deleveraged its balance sheet by $1.2 billion, bringing net debt down to US$ 11.1 billion, and improving the net debt/EBITDA ratio to 2.0x from 2.6x a year earlier. Reflecting VRL’s strengthened financial position, S&P Global raised VRL’s credit rating by three notches to B+ while Fitch Ratings and Moody’s upgraded to B+ and B1 respectively.
Zinc India achieved record mined and refined metal production of 1,095 kt and 1,052 kt, respectively. Aluminium reached record metal production of 2,422 kt and alumina production of 1,975 kt. Both businesses have maintained industry-leading cost positions, ranking in the top quartile and decile of the global cost curve respectively. Fiinews.com
