Vedanta’s commitment to financial discipline remains strong: Anil Agarwal tells shareholders

New Delhi: 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 Q3 and first nine months of FY25 have been remarkable for the company.

“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, 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.

“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.

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.

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.