New Delhi: Anil Aggarwal led the Vedanta group struggling with its debt burden, and in order to tackle the problem, the group has raised funds worth $850 million through JP Morgan and Oaktree.
As per Bloomberg reports the conglomerate has signed a five-year loan for about $850 million.
Previously, the Indian multinational mining firm tried to sell its zinc assets to Hindustan Zinc for about $3 billion but could not accomplish it. Vedanta reported a fall of 8 per cent in its profits in the April quarter. The fall was observed due to the decline in prices of the metal.
However, JPMorgan, Oaktree and Vedanta did not state any official statements.
Position of Vedanta in the market
Shares of Vedanta were up by 0.43 per cent at Rs 289.65 on May 24 on BSE. Particularly, the mining company recorded an annual rise of 56.3 per cent in its net profits to Rs 2.634 crore in comparison to Rs 6,027 crore during the last year. Its revenue declined by 5.4 per cent YoY to Rs 37,225 crore against Rs 39,342 crore in the same quarter a year back.
The firm’s EBITDA fell by 33.4 per cent to Rs 8,754 crore compared to Rs 13,153 crore in Quarter fourth for the financial year 2022. Company’s board admitted fourth and fifth interim dividends of Rs 12.50 and Rs 20.50 a piece in the quarter under review.
The declining price of steel hampering Vedanta’s business
Quarterly revenue for the mining firm fell due to falling steel prices, it caused harm as its revenue share in the aluminium business reduced from 39 per cent to 33 per cent.
Last year, Zinc, aluminium prices crashed by more than 40 per cent in comparison to March 22 hits. The firm’s total expenses went up quickly by 10.5 per cent to Rs 330.4 billion from a year earlier, which made its finance go up by 35 per cent, with this, depreciation and amortization costs hiked by 16 per cent.