Vedanta confident of meeting $2.2 billion debt obligations before March-end

Senior executives of Vedanta on Saturday said debts of $2.2 billion (close to Rs 20,000 crore) were due to be paid by two entities in the conglomerate before the end of March.

The executives told analysts the company was confident of meeting these obligations.

According to executives, debts worth Rs 4,200 crore are up for repayment at Vedanta in the current quarter and another Rs 5,500 crore was due in the fourth. In addition, $1 billion is due on the part of Vedanta Resources, the parent, in the March quarter 2023-24.

The senior management addressed analysts in a post-September quarter earnings call.

They said Vedanta’s cash flows in the second half of the financial year would be higher than the debts due in the same period.

“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 on for bond repayment and it should be finalised by the end of December this year.

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

Further, the company in its results notes stated it had 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.