Vedanta Resources reduces net debt by $300 mn in first half of FY'22

Expects to further reduce its debt by $500 million in the second half of FY'22

Vedanta Resources Ltd (VRL) on Monday announced that the company has reduced its net debt by USD 300 million in the first half of this fiscal and expects to further reduce its debt by USD 500 million in the second half of FY'22.

With the entire debt repayment at Volcan, the pledge on all the equity shares of VRL has been released, the company said in a statement.

Volcan Investments is an investment arm of metals-to-mining magnate Anil Agarwal.

"VRL has reduced its net debt (including Inter Company Loan and loan at Volcan) by USD 300 million in H1 and expects to further reduce its debt by USD 500 million in H2 FY22," the statement said.

The company said that it believes that strong operational performance from its world class asset base will strengthen its balance sheet and lead to investment grade credit metrics.

In line with the Group's commitment to decarbonizing its operations to achieve net-zero targets, Vedanta Limited has constituted an Environmental Social and Governance (ESG) Committee of the Board.

"Further, Digital First approach is adopted by the Group and we are undertaking various transformation projects to digitise operations and processes to further improve health, safety, environment compliances and risk management," it said.

Shares of the company were trading at Rs 306.95 apiece, up 1.71 per cent from its previous close.