Latest news with #VedantaResources
Bloomberg
4 days ago
- Business
- Bloomberg
Vedanta's Zambia Copper Unit Will Revamp Smelter to Boost Output
Vedanta Resources Ltd.'s Zambian copper mining unit plans to refurbish its smelter as part of efforts to ramp up production from operations the company recovered last year. The plant will undergo 'a full shutdown and refurbishment' to 'restore structural integrity and improve efficiency,' Konkola Copper Mines said on Wednesday in an emailed statement. While the firm is targeting output of 300,000 tons by the start of next decade, production was less than 10% of that last year.
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
BofA positive on Vedanta on improving credit profile, attractive valuation
Bank of America (BofA) Global Research has maintained a positive recommendation on securities issued by Vedanta Resources Ltd and its subsidiary, citing reduced holding company liquidity risk, cheaper debt, and lower reliance on dividends in the future. The firm's report follows allegations by a US-based short seller Viceroy Research of Vedanta Resources' structural subordination, reliance on brand fees/dividends to service debt and frequent changes in senior management. Vedanta Group has strongly rejected the allegations. "Even so, the holding company's liquidity risk has been reduced with a reduction in its debt to $5.3 billion by end of financial year (FY) 2025, driven by dividends and brand fees from its majority-owned Vedanta Ltd, and a 12 per cent stake sale in the latter (ownership reduced to 56.4 per cent as of FY25), and lower repayments ($450-650 million per annum) over the next three years with recent refinancing," the firm said. It also noted the moderation in interest cost at Vedanta Resources to 11 per cent in FY26, compared to 14 per cent in the last financial year (FY25). BofA estimates that there will be a reduction in Vedanta Resources Ltd's debt servicing needs. "We estimate the holding company's FY26 debt service need will reduce to $1.1 billion, compared to $1.8 billion in FY25 but its dependence on brand fees and dividends will continue." While the brand fees will stay $400 million as 2-3 per cent of revenue from certain operating companies, the dividends requirement can be lower at $800-900 million in FY26 ($1.1 billion in FY25, post-$1.1-billion stake sale). On the short seller questioning the rationale and level of brand fees, BofA said the fee is in line with India's legal framework. Vedanta Resources had raised $485 million by selling 2.63 per cent in Vedanta Ltd during FY25. While Vedanta Resources continues to focus on deleveraging, free cash flow at its subsidiary Vedanta Ltd is also expected to improve. BofA expects Vedanta Ltd's higher free cash flow to reduce dependence on debt and stake sales. "The higher free cash flow will be led by FY26 EBITDA of $5.5 billion, up by $0.5 billion YoY on higher volumes, and an increase in aluminium/silver price, partly negated by lower zinc/ oil price, per our estimates," the brokerage said, adding that any reduction in production cost will be further cash accretive for the company. As a result, BofA has said the yield curve on securities issued by Vedanta Resources/its subsidiaries looks attractive. Vedanta Resources Finance II PLC curve looks to us attractive compared to regional and emerging market (EM) peers.
Time of India
4 days ago
- Business
- Time of India
BofA Global Research remains positive on Vedanta on improving credit profile, attractive valuation
Despite allegations from a US short seller, Bank of America maintains a positive outlook on Vedanta's securities. Reduced holding company debt and lower interest costs contribute to this favorable assessment. BofA anticipates decreased debt servicing needs and a reduced reliance on dividends for Vedanta Resources, making its securities attractive compared to peers. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Global research firm Bank of America (BofA) Global Research has maintained a positive recommendation on securities issued by Vedanta, citing reduced holding company liquidity risk, cheaper debt, and lower reliance on dividends in the firm's report follows allegations by a US-based short seller against the Vedanta Group, which the conglomerate has strongly has said in the report that a recent third-party report (Viceroy report) reiterated Vedanta Resources Ltd 's known structural subordination, reliance on dividends to service debt, and changes in senior management."Even so, the holding company's liquidity risk has been reduced with a reduction in debt to USD 5.3 billion by end of financial year (FY) 2025, driven by dividends from its majority-owned Vedanta Ltd , and a 12 per cent stake sale in the latter (ownership reduced to 56.4 per cent as of FY25), and lower repayments (USD 450-650 mn per annum) over the next three years," it also noted the moderation in interest cost at Vedanta Resources to 11 per cent in FY26 from 14 per cent in the last financial estimates a reduction in Vedanta Resources Ltd's debt servicing needs."We estimate the holding company's FY26 debt service need will reduce to USD 1.1 billion, compared to USD 1.8 billion in FY25. Also, the dividends requirement will be lower at USD 800-900 mn in FY26," the firm said in its report on Resources had raised 485 million dollar by selling 2.63 pr cent in Vedanta Ltd in the previous fiscal Vedanta Resources continues to focus on deleveraging, free cash flow at its subsidiary Vedanta Ltd is also expected to improve. BofA expects Vedanta Ltd's higher free cash flow to reduce dependence on debt and stake yield curve on securities issued by Vedanta Resources, its subsidiaries look attractive."Vedanta Resources Finance II PLC curve looks to us attractive compared to regional and emerging market (EM) peers," BofA added.
Economic Times
4 days ago
- Business
- Economic Times
BofA Global Research remains positive on Vedanta on improving credit profile, attractive valuation
Global research firm Bank of America (BofA) Global Research has maintained a positive recommendation on securities issued by Vedanta, citing reduced holding company liquidity risk, cheaper debt, and lower reliance on dividends in the future. The firm's report follows allegations by a US-based short seller against the Vedanta Group, which the conglomerate has strongly rejected. BofA has said in the report that a recent third-party report (Viceroy report) reiterated Vedanta Resources Ltd's known structural subordination, reliance on dividends to service debt, and changes in senior management. "Even so, the holding company's liquidity risk has been reduced with a reduction in debt to USD 5.3 billion by end of financial year (FY) 2025, driven by dividends from its majority-owned Vedanta Ltd, and a 12 per cent stake sale in the latter (ownership reduced to 56.4 per cent as of FY25), and lower repayments (USD 450-650 mn per annum) over the next three years," it said. It also noted the moderation in interest cost at Vedanta Resources to 11 per cent in FY26 from 14 per cent in the last financial year. BofA estimates a reduction in Vedanta Resources Ltd's debt servicing needs. "We estimate the holding company's FY26 debt service need will reduce to USD 1.1 billion, compared to USD 1.8 billion in FY25. Also, the dividends requirement will be lower at USD 800-900 mn in FY26," the firm said in its report on Tuesday. Vedanta Resources had raised 485 million dollar by selling 2.63 pr cent in Vedanta Ltd in the previous fiscal year. While Vedanta Resources continues to focus on deleveraging, free cash flow at its subsidiary Vedanta Ltd is also expected to improve. BofA expects Vedanta Ltd's higher free cash flow to reduce dependence on debt and stake sales. The yield curve on securities issued by Vedanta Resources, its subsidiaries look attractive. "Vedanta Resources Finance II PLC curve looks to us attractive compared to regional and emerging market (EM) peers," BofA added.
Hans India
12-07-2025
- Business
- Hans India
JP Morgan remains upbeat about Vedanta
New Delhi: A day after US short-seller Viceroy Research called Anil Agarwal-led British firm Vedanta Resources a 'parasite' that is 'systematically draining' its Indian unit, global investment banker JP Morgan said it is not going to be distracted by the claims and maintains its 'overweight' rating on the company and its bonds. In a note titled 'Vedanta Resources: Not getting distracted; stay long', JP Morgan on Thursday said it remains comfortable with Vedanta's leverage position and government's oversight of Hindustan Zinc, an arm of Vedanta Ltd. 'We have generally focussed on Vedanta Ltd's cash flows and earnings excluding Hindustan Zinc to unravel the key drivers of the credit. VDL (ex-HZL) reported EBITDA of USD 3.1 billion in FY25 and a net leverage of 2.2x. We struggle to see financial stress at VDL with these metrics. For HZL, net leverage was 0.1x. HZL has capex plans and we see net leverage going up to 0.5x,' the note said. Vedanta is cheap within the Asian and emerging market metals and mining space supported by healthy EBITDA generation, improved funding access with approximately $1 billion bank loans raised by Vedanta Resources in FY26, and attractive yields, it added.
