Now Reading: Vedanta sets $10 bn Ebitda goal, Rs 20,000 cr debt cut
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Vedanta sets $10 bn Ebitda goal, Rs 20,000 cr debt cut
Vedanta has set a target of achieving $10 billion in group Ebitda by FY27 and reducing its overall debt by more than Rs 20,000 crore, CFO Ajay Goel told Business Standard. In…
The Story in Brief
Vedanta has set a target of achieving $10 billion in group Ebitda by FY27 and reducing its overall debt by more than Rs 20,000 crore, CFO Ajay Goel told Business Standard. In the first quarter after its demerger, Vedanta and Vedanta Aluminium reported record earnings. Vedanta Resources, the parent, cut debt by $1.1 billion in Q1 and refinanced to lower annual interest costs by over Rs 1,000 crore. The group's combined capex for FY27 is planned at nearly Rs 12,000 crore.
The Indian Opinion
The narrative that Vedanta's performance is just riding commodity prices ignores its focus on cost reduction and value-added products. The company's own operational improvements contributed to record profits. However, investors are wary, as reflected in its lower P/E multiple compared to peers. The real test will be whether Vedanta can sustain these margins when metal prices cool.
Sources (2): rediff.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
