Vedanta Limited has reported a significant improvement in its debt management as part of its Q2 FY24-25 financial results. The company’s net debt-to-EBITDA ratio reached its lowest level in six quarters at 1.49x, supported by strong cash reserves and robust earnings growth. With a focus on debt reduction and liquidity management, Vedanta’s financial strategy has positioned it favorably for sustained growth and operational resilience.
Key Highlights of Vedanta’s Net Debt Position
- Net Debt/EBITDA Ratio: Vedanta’s net debt-to-EBITDA ratio declined to 1.49x in Q2 FY25 from 1.88x in Q1 FY24, marking the lowest ratio in the past six quarters.
- Gross Debt: As of Q2 FY25, Vedanta’s gross debt stands at ₹78,650 crore (approximately $9.38 billion).
- Cash and Cash Equivalents: The company’s cash reserves reached ₹21,727 crore ($2.59 billion), reflecting strong liquidity and financial flexibility.
- Net Debt: After accounting for cash reserves, Vedanta’s net debt amounts to ₹56,930 crore (approximately $6.79 billion).
- Debt Composition: Around 80% of Vedanta’s debt is in INR, while 20% is in foreign currency debt.
- Credit Rating Improvement: Both ICRA and CRISIL upgraded Vedanta’s credit ratings to AA- with a positive outlook, citing effective debt management and improved financial health.
Key Financial Highlights for Q2 FY24-25
- Revenue: Consolidated revenue rose to ₹37,171 crore, showing a 5% increase QoQ and a 10% growth YoY.
- EBITDA: Vedanta achieved an EBITDA of ₹10,364 crore, a 44% increase YoY, marking the second consecutive quarter with EBITDA exceeding ₹10,000 crore.
- Net Profit (PAT): The quarterly PAT reached ₹5,603 crore, with PAT before exceptional items at ₹4,467 crore, reflecting an impressive 230% YoY increase.
- EBITDA Margin: The EBITDA margin for Vedanta stood at a robust 34%, up approximately 900 basis points YoY, showcasing efficient cost management and profitability enhancements.
Vedanta’s strategic focus on deleveraging, alongside strong financial performance, underscores its commitment to sustainable growth. The reduction in debt, coupled with a solid liquidity position, has strengthened the company’s balance sheet, positioning it well for future expansion and operational efficiency.
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Vedanta