The current fiscal would be a transformative year for mining major Vedanta, a subsidiary of Vedanta Resources (VRL), as it prioritises a disciplined growth and explores opportunities.
While VRL looks to deleverage $3 billion in the next three years, the group is expecting to achieve an annual group Ebitda of $7.5 billion within two years, chairman Anil Agarwal said in a communication to shareholders. “As we step into the new fiscal, we have set targets that reflect our pursuit of sustainable growth while maintaining a healthy balance sheet,” Agarwal said. He added: “Vedanta Group remains firmly focused on the exciting road ahead. 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.”
On demerger, Agarwal said each company will be promoted to leverage its own independent strengths and attract targeted investments, ultimately driving sustainable growth and long-term stakeholder value creation. “We expect to complete the demerger by December,” he added. In September 2023, metals and energy major VEDL announced plans to spin out its businesses into six listed entities.
He said FY24 was a year of exceptional operational excellence and strategic growth across all business sectors, setting the stage for a resilient and prosperous future.
Vedanta had previously stated that it will invest $6 billion across businesses that span from aluminium and zinc to iron ore, steel and oil and gas, which is expected to generate incremental revenue of over $6 billion and boost Ebitda from an expected $5 billion in the fiscal year ended March 31 to $6 billion in FY25 and up to $7.5 billion by FY26.