Vedanta confident to meet $2.2 billion debt obligations before March-end

Senior executives from Vedanta Ltd on Saturday informed analysts that debt worth $2.2 billion is due at the company and parent level before March-end. The executives added that the company is confident in meeting these obligations.

According to the company executives, debt worth Rs 4,200 crore is up for repayment at Vedanta Ltd level in the current quarter, and another Rs 5,500 crore is due in the fourth quarter. In addition, another $1 billion is due at the parent company Vedanta Resources level in the quarter ending March 2024. The senior management was addressing analysts in a post September 2023 quarter earnings call.

The executives further added that Vedanta’s cash flows in the second half of the financial year will be higher than the debt due in the same period. “Further, the company is comfortable with the possibility of refinancing or repaying this debt,” the senior executive said on the call.

For Vedanta Resources, the company’s management said discussions with bankers are ongoing for the bond repayment of $1 billion due in the quarter ending March 2024, and the same should be finalised by December-end this year.

In the quarter ended September 2023 (Q2FY24), Vedanta reported a loss of Rs 1,783 crore attributable to the owners of the company. The company said there was a one-time net tax impact of Rs 6,128 crore as a result of the adoption of a new tax regime effective FY23.

Further, the company in its results notes also stated it has received a final partial arbitration award, in relation to a Production Sharing Contract for the Rajasthan Block. Pursuant to the award, in the quarter under review, it has recognised a benefit of Rs 4,761 crore in its revenue from operations and reversed a previously recognised impairment of Rs 1,179 crore.