Latest news with #VRL
Time of India
3 days ago
- Business
- Time of India
Vedanta Chairman bats for transformation amid record FY25 performance, demerger push
Mining conglomerate Vedanta Ltd chairman Anil Agarwal has unveiled a transformation roadmap, positioning the company as a global leader in transition metals, critical minerals, energy, and technology under its next growth phase, dubbed ' Vedanta 2.0 '. In his address to stakeholders in the group's annual report, Agarwal said the company is at an inflection point, supported by a record financial year, strong cost leadership, and plans to unlock value through its ongoing demerger exercise, which is nearing completion. He also underscored the importance of the group's strategic realignment, focus on vertical integration, and growing role in India's infrastructure buildout and energy transition. "FY 2024-25 stands out as a year of strong performance for Vedanta. We delivered our highest-ever revenue of Rs 1,50,725 crore, while our EBITDA jumped 19 per cent to Rs 43,541 crore, delivering industry-leading margins of 34 per cent - all achieved in a challenging environment," he said in his letter to stakeholders. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Shooter Action MMO Crossout Play Now Undo Also highlighting the importance of the company's focus on driving operational excellence across the group, Agarwal said, "Our aluminium and zinc operations maintained their industry-leading cost positions, ranking in the top quartile and decile, respectively, of the global cost curve. Zinc International, Iron Ore, and Steel businesses also delivered robust improvements, reinforcing Vedanta's leadership across multiple sectors." Vedanta undertook several significant corporate actions in FY25 to strengthen its cash reserves. This includes Rs 8,500 crore raised through a qualified institutional placement and an offer for sale at Hindustan Zinc , raising an additional Rs 3,134 crore, which allowed it at one point during the year to sit on a cash war chest of Rs 33,000 crore. Live Events Agarwal highlighted that the group's committed deleveraging targets - both at the Vedanta Limited level and its parent Vedanta Resources have been met ahead of the targeted timeline. "At Vedanta Resources Limited (VRL), we deleveraged our balance sheet by USD 0.7 billion this year, bringing the total debt reduction to USD 4 billion over the last three years, surpassing our earlier stated targets. ICRA and CRISIL upgraded Vedanta's long-term rating from 'AA-' to 'AA'...watch with developing implications, and S&P Global raised VRL's rating by three notches to 'B+' with stable outlook," he said, while referring to the fact that the company's performance in this area hadn't gone unnoticed. Sharing his views on the company's future trajectory, Agarwal said, "For Vedanta, this is the right moment to transform itself into a natural resources, energy and technology company. Vedanta 2.0 will have a key role in each of the most crucial levers of the economy." Speaking about the role they play in supporting the growth of the Indian economy, he said, "Our diverse portfolio of 15 major commodities, oil & gas, and renewable energy is not only inextricably linked to the growth and development of the Indian economy, but also intricately tied to the global goal to embrace a low carbon future." The company's ongoing demerger exercise, which is nearing completion and is widely expected to unlock shareholder value, also found mention in the Chairman's letter. "We are in the process of demerging our business verticals to create a pure-play model, which is nimble and fine-tuned to even faster growth and unlocking of massive value." Agarwal highlighted the timely completion of all capex projects, continued deleveraging, interest cost reduction, and successful completion of the demerger scheme as the priorities for FY26. Speaking on the company's growth ambition, he highlighted the investment of USD 1.5 billion in capex on projects in FY 2024-25, with an additional USD 1.5-1.7 billion of capex investments earmarked for FY 2025-26. "These investments have the capacity to create tens of thousands of new jobs, both directly across our operations and indirectly across the ecosystems that they will support through essential raw materials." In FY 2024-25, Vedanta's subsidiary Hindustan Zinc became the world's largest integrated zinc producer, delivering record-breaking annual mined metal production of 1,095 kilo-tonnes (kt) and refined metal production of 1,052 kt. Vedanta's aluminium business also achieved its highest annual metal production of 2,422 kt.
Herald Sun
5 days ago
- Business
- Herald Sun
Verity Resources set for first REE-Gallium drilling at Pimenta in Brazil
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. Verity will test a 20km high grade rare earths-gallium trend at the Pimenta project Exploration indicates geological signatures similar to American Rare Earths' Halleck Creek project in the US Auger drilling will target two priority zones within a >20km airborne thorium anomaly Special report : A maiden auger drill program is set to begin at Verity Resources' Pimenta project in Minas Gerais, Brazil, to test a 20km high-grade rare earths-gallium-titanium zone. The drilling will follow recent reconnaissance work which returned up to 25,817ppm total rare earth oxide (TREO), with an average of 25% high value magnet rare earths (MREO) over 147 samples. Verity Resources' (ASX:VRL) program will target two priority zones within a >20km airborne thorium anomaly, where surface sampling confirmed strong geochemical correlation and high concentrations of rare earths, gallium and titanium. The campaign will consist of 20 auger holes, designed to test the vertical and lateral continuity of mineralisation within the saprolite zone. VRL believes the results to date confirm a mineralisation style potentially similar to American Rare Earths' (ASX:ARR) Halleck Creek allanite REE deposit with a 2.63Bt at 3,292ppm TREO resource, one of the largest in the US. Importantly, the REE geochemical signature remains consistent between rock and regolith samples, supporting a model of vertical enrichment via residual weathering. Background on Pimenta Pimenta is in Brazil's well-established mining region of Minas Gerais. The project spans 90km2, targeting a large, granite-hosted REE system enriched in rare earth elements and critical accessory minerals including lithium, zirconium, niobium and titanium. VRL completed the acquisition of a 70% interest in the project in 2024 from Foxfire Metals. The company recently agreed to extend the minimum joint venture expenditure commitment term for a further 12 months to February 2026. 'Hallmarks' of a critical metals discovery VRL's board believes the start of auger drilling at Pimenta is an important milestone. 'Surface results confirm the presence of a widespread and high-grade REE-gallium-titanium system over a confirmed 20km of radiometric strike,' the company said. 'This program will give us key insights into mineralisation continuity and depth potential. 'With excellent surface results and strong geological context, Pimenta has the hallmarks of a significant critical metals discovery.' Strategic importance of Pimenta Whilst the company's focus remains on the development of a resource upgrade and expansion strategy at the Monument gold project in WA, Verity is pleased to be in a position with a second project of global strategic importance developing in the background. Rare earths, gallium and titanium are all considered critical minerals, essential for modern technologies and national security but bear a risk of supply chain disruptions. In mid-2023, China introduced export restrictions on gallium and other critical metals, leading to supply shortages and subsequent price increases. Gallium is primarily used in electronics and is also a critical material in the production of semiconductors, while rare earths are used in a wide range of applications from everyday electronics to permanent magnets used in EV motors and wind turbines. Due to its strength, low density and corrosion resistance, titanium is used in aerospace components, medical implants, sporting goods and jewellery. This article was developed in collaboration with Verity Resources, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Originally published as Verity Resources set for first REE-Gallium drilling at Pimenta in Brazil
Hans India
11-06-2025
- Business
- Hans India
Vedanta Resources eyes invest grade rating, plans to cut debt
New Delhi: London-based Vedanta Resources Ltd (VRL) is targeting an investment grade credit rating on the back of its sustained deleveraging, the proposed demerger at its Indian subsidiary, Vedanta Ltd, and its robust growth, operational efficiencies and strong financial performance. VRL is committed to reducing its total debt from the current $5 billion to $3 billion by FY27 while strengthening its critical minerals, transition metals, energy and technology portfolio. A person aware of the matter said that VRL, at a recently held investor conferences in Hong Kong and Singapore, shared that the company is looking for an immediate credit rating upgrade to BB levels by proactively refinancing and prepaying its high-interest cost $550 million private credit facility due in August 2026. In the medium term, the company plans to achieve an investment grade rating on the back of its improved debt profile, financial and operational performance. Vedanta highlighted its robust earnings, healthy free cash flows, ongoing growth projects, strengthened balance sheet, and future deleveraging plans to the investors, the source said. An investment-grade credit rating signifies a company's strong capacity to meet its financial obligations and is considered a safe investment for institutional investors. It also allows a company to borrow money at lower interest rates, attracting a broader range of investors and gaining easier access to global debt markets. At present, VRL has a credit rating of B+ by S&P, Fitch & Moody's, with S&P giving a 3-notch upgrade to the company in FY25. The investment grade rating is linked to VRL's debt reduction target (to $3 billion) by FY27, so they are looking for an investment grade in about two years from now. Sources indicate that VRL is currently working with banks to refinance and pre-pay a $550 million private credit facility that will expire in August 2026. It is likely to use a bank loan with single-digit interest rates to refinance the facility, with savings of 800-900 basis points, resulting in interest cost savings of $47 million, said the person quoted above.
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Business Standard
10-06-2025
- Business
- Business Standard
Vedanta eyes investment grade rating, plans to cut debt to ₹3 bn by FY27
London-based Vedanta Resources Ltd (VRL) is targeting an investment grade credit rating on the back of its sustained deleveraging, the proposed demerger at its Indian subsidiary, Vedanta Ltd, and its robust growth, operational efficiencies and strong financial performance. VRL is committed to reducing its total debt from the current USD 5 billion to USD 3 billion by FY27 while strengthening its critical minerals, transition metals, energy and technology portfolio. A person aware of the matter said that VRL, at a recently held investor conferences in Hong Kong and Singapore, shared that the company is looking for an immediate credit rating upgrade to BB levels by proactively refinancing and prepaying its high-interest cost USD 550 million private credit facility due in August 2026. In the medium term, the company plans to achieve an investment grade rating on the back of its improved debt profile, financial and operational performance. Vedanta highlighted its robust earnings, healthy free cash flows, ongoing growth projects, strengthened balance sheet, and future deleveraging plans to the investors, the source said. An investment-grade credit rating signifies a company's strong capacity to meet its financial obligations and is considered a safe investment for institutional investors. It also allows a company to borrow money at lower interest rates, attracting a broader range of investors and gaining easier access to global debt markets. At present, VRL has a credit rating of B+ by S&P, Fitch & Moody's, with S&P giving a 3-notch upgrade to the company in FY25. The investment grade rating is linked to VRL's debt reduction target (to USD 3 billion) by FY27, so they are looking for an investment grade in about two years from now. Sources indicate that VRL is currently working with banks to refinance and pre-pay a USD 550 million private credit facility that will expire in August 2026. It is likely to use a bank loan with single-digit interest rates to refinance the facility, with savings of 800-900 basis points, resulting in interest cost savings of USD 47 million, said the person quoted above. The company expects to achieve an upgrade to BB levels right after the refinancing and will continue to work towards an Investment Grade credit rating of BBB-, in the medium term, which is considered the first rung of investment grade rated companies. Vedanta Ltd (VEDL), through its Indian subsidiary, is in the final stages of its demerger process that will result in the creation of four new sector-focused, market-leading entities and will help unlock value for existing shareholders while offering investors an opportunity to invest in pure-play businesses. The company expects the demerger to be completed by September 2025. Over the past three years, the company has been on a path of sustained deleveraging and refinancing. Between March 2022 and March 2025, VRL reduced its net debt from USD 8.9 billion to USD 5 billion, the lowest in a decade. Vedanta Group's net debt to EBITDA ratio has fallen from 3.3x in FY20 to 2x in FY25, and per VRL's subsidiary's earnings presentation, it is expected to fall further to 1x in the mid-term. In FY25, VRL also refinanced its entire USD 3.1 billion bond portfolio, resulting in a significant reduction in average coupon rate by 250 bps while extending the maturity up to FY34. This will help in further improving the company's credit profile. In its recent earnings call, VEDL's management opined that a normalised dividend of about 6 per cent yield might contribute USD 800 million receipt at VRL. Together with brand fees, dividend (paid by Vedanta Ltd. to VRL) and operating free cash flows, VRL's overall target of reaching USD 3 billion debt in two years remains intact. In April, the subsidiary VEDL declared its FY25 results, achieving its highest ever annual revenue of USD 17.8 billion and the second highest annual EBIDTA of USD 5.1 billion, with its key businesses, Zinc India and Aluminium, in the top quartile and top decile of the global cost curve.
Time of India
10-06-2025
- Business
- Time of India
Vedanta Resources eyes investment grade rating, plans to cut debt to USD 3 bn by FY27
Vedanta Resources Ltd (VRL) aims for an investment-grade credit rating, driven by deleveraging, a proposed demerger at Vedanta Ltd, and strong financial performance. VRL plans to reduce its debt to USD 3 billion by FY27 and is refinancing high-interest debt, targeting a BB rating soon. The demerger of Vedanta Ltd is expected by September 2025, unlocking value for shareholders. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: London-based Vedanta Resources Ltd (VRL) is targeting an investment grade credit rating on the back of its sustained deleveraging, the proposed demerger at its Indian subsidiary, Vedanta Ltd , and its robust growth, operational efficiencies and strong financial performance VRL is committed to reducing its total debt from the current USD 5 billion to USD 3 billion by FY27 while strengthening its critical minerals, transition metals, energy and technology portfolio.A person aware of the matter said that VRL, at a recently held investor conferences in Hong Kong and Singapore, shared that the company is looking for an immediate credit rating upgrade to BB levels by proactively refinancing and prepaying its high-interest cost USD 550 million private credit facility due in August the medium term, the company plans to achieve an investment grade rating on the back of its improved debt profile, financial and operational highlighted its robust earnings, healthy free cash flows, ongoing growth projects, strengthened balance sheet, and future deleveraging plans to the investors, the source investment-grade credit rating signifies a company's strong capacity to meet its financial obligations and is considered a safe investment for institutional investors. It also allows a company to borrow money at lower interest rates, attracting a broader range of investors and gaining easier access to global debt present, VRL has a credit rating of B+ by S&P, Fitch & Moody's, with S&P giving a 3-notch upgrade to the company in investment grade rating is linked to VRL's debt reduction target (to USD 3 billion) by FY27, so they are looking for an investment grade in about two years from indicate that VRL is currently working with banks to refinance and pre-pay a USD 550 million private credit facility that will expire in August 2026. It is likely to use a bank loan with single-digit interest rates to refinance the facility, with savings of 800-900 basis points, resulting in interest cost savings of USD 47 million, said the person quoted company expects to achieve an upgrade to BB levels right after the refinancing and will continue to work towards an Investment Grade credit rating of BBB-, in the medium term, which is considered the first rung of investment grade rated companies. Vedanta Ltd (VEDL), through its Indian subsidiary, is in the final stages of its demerger process that will result in the creation of four new sector-focused, market-leading entities and will help unlock value for existing shareholders while offering investors an opportunity to invest in pure-play company expects the demerger to be completed by September the past three years, the company has been on a path of sustained deleveraging and refinancing. Between March 2022 and March 2025, VRL reduced its net debt from USD 8.9 billion to USD 5 billion, the lowest in a Group's net debt to EBITDA ratio has fallen from 3.3x in FY20 to 2x in FY25, and per VRL's subsidiary's earnings presentation, it is expected to fall further to 1x in the FY25, VRL also refinanced its entire USD 3.1 billion bond portfolio, resulting in a significant reduction in average coupon rate by 250 bps while extending the maturity up to FY34. This will help in further improving the company's credit its recent earnings call, VEDL's management opined that a normalised dividend of about 6 per cent yield might contribute USD 800 million receipt at VRL. Together with brand fees, dividend (paid by Vedanta Ltd. to VRL) and operating free cash flows, VRL's overall target of reaching USD 3 billion debt in two years remains April, the subsidiary VEDL declared its FY25 results, achieving its highest ever annual revenue of USD 17.8 billion and the second highest annual EBIDTA of USD 5.1 billion, with its key businesses, Zinc India and Aluminium, in the top quartile and top decile of the global cost curve.
