Exclusive: Vedanta has enough cash flow to prepay debts, says chairman Anil Agarwal

Vedanta Resources chairman Anil Agarwal on Monday said that the company's debt is within manageable limits. In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, he reaffirmed that the company has enough means to meet debt repayment liabilities and has always met its repayment commitments. 

“We can manage our debt comfortably and have more than expected cash flow to prepay debts,” Agarwal said.

“Our debt is comparatively less than other big conglomerates in the world,” he added.

The comments by Vedanta Resources chairman assume significance as it comes in the backdrop of S&P Global Ratings stating that the company's credit ratings may 'come under pressure' if it is unable to raise USD 2 billion and/or sell its international zinc assets.

“We operate at a profit run-rate of 30 per cent and can never default on debt repayment,” the billionaire said, adding that "the company is aiming to repay the debt in the next 1-1.5 years".

Vedanta Limited (Vedanta Resources has a 70 per cent stake) has proposed sale of the international zinc business to Hindustan Zinc Limited (Vedanta Limited has 65 per cent ownership) for nearly USD 3 billion. The government is, however, averse to the deal as it is a related party transaction and will hit its own share sale plan. Valuation of the assets is among several concerns flagged by the government, which holds a 29.54 per cent stake in HZL, which was privatised more than two decades ago.

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