Vedanta Resources said on Wednesday it has healthy cash flow boosted by robust domestic consumption and that growth would be propelled by its associate firms' investments into semiconductors, display glass, renewables, optical fibre, and transmission. The London-based company also said it plans to cover 50% of its liquidity requirements for fiscal 2024 internally and the rest through refinancing. Vedanta Resources' statement also comes at a time when Indian conglomerate Adani Group is still battling the fallout from a U.S. short-seller's critical report on its business practices that has wiped off $120 billion from its market value. Vedanta Ltd, which mines zinc, silver and aluminium and drills for crude, reported a 41% slump in third-quarter profit in January, hit by a fall in commodity prices. In its report, S&P said its rating on Vedanta Resources was likely to come under immediate pressure if a planned $2 billion fund raise and a sale of assets did not progress over the coming weeks. The ratings agency added that the group would be left with about $500 million after repayments in the absence of external funding.
In 2020, Vedanta Resources failed to take Vedanta Ltd private as it did not get the required number of shares needed to buy back. (Reporting by Varun Vyas in Bengaluru; Editing by Savio D'Souza and Nivedita Bhattacharjee)
