Vedanta Limited, an Indian multinational mining company, has announced its metal output report for the second quarter of FY2023-24 ended September 30. As per the report, Vedanta produced 594,000 tonnes of aluminium compared to 579,000 tonnes in the June quarter. That reflected a sequential rise of 2.59 per cent in Vedanta's aluminium production during Q2 FY2024.
On a year-on-year calculation, the company's aluminium output in Q2 edged an increase of 2 per cent, similar to the annual growth rate in Q1. Lower production cost, as was stated by Vedanta in Q1 report, could be attributed to the continuous rise in its aluminium output volume.
Combining the output in Q1 and Q2, Vedanta's total aluminium production amassed at 1.173 million tonnes.
Vedanta's Q2 production report also showed that its alumina output at Lanjigarh refinery increased 2 per cent Y-o-Y and 17 per cent Q-o-Q. The company's power sales increased 12 per cent to 4,048 million units (MU) versus 3,615 MU a year ago.
Mining magnate Anil Agarwal's firm also plans to demerge its iron ore, power, steel and aluminium, and oil and gas businesses into separate entities as part of value creation and reducing debt load. The company will issue one share of the five demerged businesses for every share held in the company, according to a report.
The group has also established plans to repay debts due in 2024. 'We have payments due in January (2024) and August (2024). We are completely arranged. We will receive a $1 billion payment in January and a $500-600 million payment in August. Both are perfectly aligned," said Anil Agarwal in an interview.
Mr Agarwal is also corresponding with JPMorgan Chase and Standard Chartered Bank in advance to secure a $3 billion refinancing facility to stave off a default, said some people familiar with this matter.
On this demerger news and the possibility of paying off debt, Vedanta's shares climbed 2 per cent last week on September 28. The company's stocks had fallen amid mounting concerns over Vedanta's debt restructuring in the six previous trading sessions.
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