NEW DELHI: Vedanta group’s debt problems continue to mount as the group’s consolidated borrowings rose by 22% year-on-year to Rs 75,227 crore at the end of December 31, 2023, quarter.
On a quarter-on-quarter basis, the group’s debt saw a 1% increase. The company’s third quarter results, announced on Thursday, showed the debt/EBIDTA ratio rose from 0.96 times at the December 2022 quarter-end to 1.7 times at the end of December 2023 quarter. At the end of September quarter, the debt/EBIDTA ratio was 1.64 times.
The net debt (total debt less of cash and cash equivalents) of the company zoomed 64% to Rs 62,493 crore by the end third quarter of the current financial year compared to Rs 38,000 crore a year ago. Cash and cash equivalents at the third quarter had shrunk to Rs 12,734 crore from Rs 23,474 crore in the year ago period. At the end of the September quarter, the company’s cash and cash equivalents were at Rs 16,700 crore.
However, on a standalone basis, Vedanta Ltd debt shrunk from Rs 45,245 crore to Rs 44,134 crore. The rise in consolidated debt of the group was on account of over 100% year-on-year jump in total debt of Hindustan Zinc from Rs 5,000 crore to Rs 10,000 crore. A Rs 7,000 crore debt on the books of THL Zinc Venture added to the group’s debt in the current financial year.
The group has to repay Rs 35,000 crore of the total debt by FY26. Recently, the bond holders of Vedanta Resources, the holding company of Vedanta Ltd, had given a go ahead to the group’s proposal to restructure a series of bonds. These series of bonds include two that were due for maturity in 2024, one in 2025 and one in 2026 Meanwhile, Vedanta Ltd on Thursday reported an 8% increase in consolidated profit after tax (PAT) before exceptional items for the third quarter at Rs 2,868 crore. On a sequential basis PAT before exceptional items rose 112%.
The company reported the highest ever third quarter consolidated revenue of Rs 34,968 crore, up 4% quarter on quarter and 4%YoY. Consolidated quarterly EBITDA of the company was Rs 8,677 crore, up 21% QoQ and 22% YoY.