Latest News | Anil Agarwal Says Commitment to Financial Discipline Remains Strong

New Delhi, Feb 2 (PTI) Billionaire Anil Agarwal on Sunday told his mining conglomerate Vedanta's shareholders that the group's commitment to financial discipline remains strong and it is moving towards the goal of becoming a global leader in critical and transition minerals.

In a letter to shareholders, Vedanta's chairman said the third quarter and first nine months of the 2024-25 fiscal have been remarkable for the company.

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"We delivered a record third quarter EBITDA of Rs 11,284 crore, also our highest in the past 11 quarters, a profit after tax of Rs 4,876 crore, up 70 per cent from the same period last year, and a net debt to EBITDA ratio of 1.4x – our lowest in the past 7 quarters," he wrote.

During the third quarter (October-December 2024), its aluminium production witnessed robust growth, with production increasing to 6,14,000 tonnes in Q3 and 1.819 million tonnes over nine months, up 3 per cent year-on-year. Alumina production jumped 16 per cent to 1.543 million tonnes over nine months, while Zinc India achieved its highest-ever refined metal output during this period.

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"Vedanta's commitment to optimising its production reflects our recognition of the rising demands of such metals in India and the role they will play in supporting our nation's progress toward a low-carbon future," he said. "Vedanta, I am pleased to share, is moving steadily towards its goal of becoming a global leader in critical and transition minerals, energy, and technology."

Agarwal said the third quarter and first nine months of FY25 have been remarkable for Vedanta.

Vedanta's laser focus and determination to strengthen business across all major parameters have helped it continue to deliver exceptional value to shareholders.

Anyone who had invested in Vedanta at the start of the past five-year period would have seen their investments multiplying over 4.7 times during this time, both in terms of capital appreciation and cash dividends returned.

Vedanta has the strongest track record on dividend payment - a yield of 81 per cent - the highest amongst all its peers.

"As reflected in my last letter, our commitment to financial discipline remains strong. This has been recognised by all the major global credit rating agencies, who have upgraded our rating outlook multiple times throughout this quarter," he said without giving details.

Agarwal said Vedanta will soon be seeking final approval from its creditors and shareholders on the proposed demerger scheme.

"Post demerger, every Vedanta shareholder will receive 1 additional share in each of the 4 newly demerged companies - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power and Vedanta Steel and Ferrous Metals - that this process will deliver.

"This will substantially broaden the Vedanta investor base while allowing all new investors the opportunity to choose between these entities and the pureplay industry verticals they represent," he said.

Stating that the mining and natural resources sector has played an extremely valuable role in the growth and development agendas of major economies in North America, Europe, the Middle East, China and Australia, he said with less than 20 per cent of India's mineral resources explored to date, and with increasing focus on the sector both at home and overseas, India's time is now!

"Vedanta stands committed to India's progress - desh ki zarooraton ke liye!" he added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)