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Vedanta Resources Shed $300 Mn Net Debt in H1FY22

The company expects to further reduce its debt by $500 million in the second half of FY 22.

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In what has been a year of corporate fiscal reassessment and cash-flow realignment, the net debt of companies have been thoroughly re-evaluated. CFOs have been shifting to long term loans and reducing net debt more actively with a firm hand over liquidity.

To the same tune, Vedanta Resources Ltd (VRL) on Monday announced that the company has reduced its net debt by USD 300 million in the first half of this fiscal and expects to further reduce its debt by  USD 500 million in the second half of FY'22. In a company statement, the company further stated that the entire debt repayment at Volcan and the pledge on all the equity shares of VRL has been released.

The statement further added, "VRL has reduced its net debt (including Inter Company Loan and loan at Volcan) by USD 300 million in H1 and expects to further reduce its debt by USD 500 million in H2 FY22." Volcan Investments is an investment arm of metals-to-mining magnate Anil Agarwal. 

The company now eyes a strong operational performance from its class asset base to strengthen its balance sheet and lead to investment grade credit metrics. Also, on its commitment to decarbonising operations to achieve net-zero targets, Vedanta Limited has constituted an Environmental Social and Governance (ESG) Committee of the Board.

Digital transformation remains on the agenda of the company which also stated, “Further, a Digital-First approach is adopted by the Group and we are undertaking various transformation projects to digitise operations and processes to further improve health, safety, environment compliances and risk management,"

Shares of the company were trading at Rs 306.95 at the end of market day. This is up 1.71 per cent from its previous close before the weekend.

(With inputs from PTI)

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