Latest news with #DeshneeNaidoo
Time of India
10-07-2025
- Business
- Time of India
Viceroy report has no new info Vedanta has not shared before: VRL CEO Deshnee Naidoo
Live Events DEMERGER PLANS (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: US-based short seller Viceroy Research 's report on Vedanta Resources (VRL) has no new information that has not been voluntarily shared with shareholders previously, VRL's chief executive officer Deshnee Naidoo said Thursday."The authors of the report have compiled only part information filled with gross inaccuracies which you've also discerned as part of this meeting," Naidoo said addressing shareholders at the annual general meeting of India-listed Wednesday, Viceroy Research, which is short on the debt of Vedanta Resources, said that the structure of Vedanta Resources, which is the holding company of Vedanta, is that of a 'ponzi' scheme. It alleged that the group is on the brink of insolvency, and is being propped only by cash infusions from its subsidiary Anil Agarwal , meanwhile, said that disclosures and transparency are fundamental for the company, and that the report is "motivated", but the company will deal with also pointed out irregularities in several of the company's subsidiaries including Hindustan Zinc , Talwandi Sabo Power, Electrosteel Steel and Konkola Copper Mines."It's all about the disclosures and the transparency that we've maintained with you over the decades," Naidoo said, adding that the management would continue to focus on demerger , diversification and group will allocate $5.5-$6 billion on growth capital expenditure over the next three -four years, she reiterated, which would help annual earnings before interest, tax, depreciation and amortization reach $10 billion."Our growth capex is our strategic choice, and we've guided that we continue to look at a spend of $1.5 billion (annually) over the coming years, next two to three years, in order to complete the capital programme to deliver the expansions across the portfolio," she said. Vedanta Resources had a net debt of over $11 billion at the end of fiscal 2025, down by $1.2 is confident that the proposed demerger of Vedanta, into five independently listed companies, will be completed before September. The proposal has already received approval from 99.5% creditors and shareholders. "Each of these businesses has the potential to grow into a $100 billion enterprise," he said."I have never been more optimistic about the natural resources and technology sectors," he told Research, meanwhile, said that the demerger does not address the fundamental cash crunch for Vedanta Resources, and the companies formed post the demerger will have unsustainable debts right from their the company's AGM was on, Viceroy Research issued a statement on social media website 'X' terming the meeting a "filibustering" session."Instead of Q&A, the Vedanta Q&A is just a filibustering session where obvious shareholder plants just praise Agarwal, and don't ask any questions," the research firm said. "It's so absurdly ridiculous to praise the chair of the company looting you."
Mint
10-07-2025
- Business
- Mint
Shareholders shrug off Viceroy's allegations, repose confidence in Vedanta
Shareholders reposed their confidence in Vedanta Ltd (VEDL) during the company's annual general meeting on Thursday, a day after a short-seller's report called the company a 'dying host' for its London-based 'parasite" parent Vedanta Resources Ltd (VRL). The company's shares settled 0.4% lower on the BSE at ₹ 438.95 apiece, mirroring the 0.41% fall in the benchmark Sensex. When one of the shareholders broke ranks to question the company's brand fee payments to VRL, Anil Agarwal, the founder and chairman of the Vedanta Group, chose not to respond. He simply called the short-seller report 'motivated,' before asking Deshnee Naidoo, the chief executive of VRL, who is not on the rolls of VEDL, to answer the question. Naidoo said that there was no new information in the short-seller report, and that it was based on public information. 'The authors have only compiled part information with gross inaccuracy which was discerned by the shareholders in the meeting,' she said. The management will stay focused on Vedanta's upcoming demerger, diversification and deleveraging debt. American short-seller Viceroy Research, which has also targeted Wirecard and Truecaller earlier, accused Vedanta Group of alleged financial misconduct and misrepresentation, making empty promises to shore up share prices, manipulating asset values, raising off-balance sheet loans, and corporate governance issues, Mint reported on Wednesday. Viceroy has accused VRL of draining cash from VEDL. One way is by charging branding fees even from subsidiaries like Hindustan Zinc, and ESL Steel that do not use the brand name. Except Vedanta Ltd, none of the companies paying brand fees make any meaningful use of the Vedanta brand name, but collectively they paid $361.3 million in brand fees in FY25. Vedanta Ltd has paid Vedanta Resources $1.16 billion in brand fees and strategic services over the past four years. Mumbai-listed Vedanta had closed 3.38% lower on the BSE on Wednesday after crashing nearly 8% intraday, while Hindustan Zinc Ltd, fell 2.56%. Analysts at JP Morgan on Thursday said that the firm remained comfortable with VEDL's leverage and took comfort in the government's oversight at Hindustan Zinc (HZL). The Indian government holds a 29.5% stake in the country's largest zinc producer. The brokerage said that it considers VEDL's shares to be priced cheaper within Asia and the emerging markets metals and mining space with healthy Ebitda generation. The key upside risks to the brokerage's recommendations were continued strong commodity prices, further de-leveraging at Vedanta, and potential asset sales or equity raises, it added. The key downside risks included an over 10% downturn in commodity prices, fresh borrowing upwards of $500 million and a decline in the firm's access to domestic bank funding leading to more expensive loans. Shareholders at the AGM said they were satisfied with the company's statement on the short-seller report and continue to support them. They called these claims misleading with no substance and the company will overcome the situation shortly just like Adani did after another short-seller Hindenburg released a report on them. A shareholder from Kolkata called the timing of the short-seller report unique since it was a day before the AGM. The conversation shifted to Vedanta's exposure to tariffs, capital expenditure plans and its upcoming demerger into five separately listed companies. 'Only 2% of Vedanta's revenues are exposed to US tariffs, although there is volatility in metal prices over the last 3-4 months, based on tariff news, because of robust margins the company sees benefit in the input costs because of the company's raw material strategy and hence the margins have largely intact,' said Naidoo. The company's chief financial officer Ajay Goel shared the mining company's capex for the current fiscal year to be $1.5-1.7 billion across the areas. The company allocates capital based on three basic principals- reward shareholders with dividends, investment for capital expenditure and maintaining the right level of debt leverage. The company is also preparing to demerge into five companies- Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and Vedanta Ltd, which will continue as the parent entity. Vedanta's chairman Agarwal expects the demerger to be completed by September this year and existing shareholders of the company will receive one share in each of the new companies, for each share they hold in Vedanta Ltd. Viceroy Research has a short position of undisclosed magnitude on the bonds of VRL, which it took in April. The short-seller has no exposure to the publicly traded shares of VDEL or HZL, as per Fraser Perring, the co-founder of Viceroy.
Yahoo
01-05-2025
- Business
- Yahoo
Vedanta Ltd (BOM:500295) Q4 2025 Earnings Call Highlights: Record Profits and Strategic ...
Annual Revenue: INR 150,725 crores, up 10% year-on-year. EBITDA: INR 43,541 crores, up 37% year-on-year. Quarterly Revenue (Q4 FY '25): INR 39,789 crores, up 14% year-on-year. Quarterly EBITDA (Q4 FY '25): INR 11,168 crores, 1% growth year-on-year. EBITDA Margin (Q4 FY '25): 35%, highest in the last 12 quarters. Profit After Tax (PAT) (Q4 FY '25): INR 4,961 crores, up 118% year-on-year. Annual PAT: INR 25,535 crores, up 172% year-on-year. Net Debt: INR 53,251 crores, decreased by more than INR 3,000 crores year-on-year. Net Debt-to-EBITDA Ratio: Improved to 1.2x from 1.5x in FY '24. Liquidity Position: INR 2,602 crores, up 34% year-on-year. Aluminum Production: Highest ever annual metal production of 2,422 kt. Zinc India Mined Metal Production: 1.095 million tonnes annually. Zinc India Refined Metal Production: 1.052 million tonnes annually. Oil and Gas Production (Q4 FY '25): 96.2 kbpod. Iron Ore Production: Increased 24% year-on-year and 40% quarter-on-quarter. Warning! GuruFocus has detected 4 Warning Sign with BOM:500295. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Vedanta Ltd (BOM:500295) achieved its highest annual revenue of INR 150,725 crores, marking a 10% year-on-year increase. The company reported its second highest EBITDA of INR 43,541 crores, reflecting a 37% year-on-year growth. Vedanta's aluminum business achieved its highest ever annual metal production of 2,422 kt, surpassing volume guidance for FY '25. The company secured a seller delivery agreement for over 1 gigawatt of renewable energy, aiming to significantly reduce emissions. Vedanta Ltd (BOM:500295) is making progress on its $9.5 billion capital expenditure program, with $5.5 billion already spent, supporting strategic projects on volume expansion and backward integration. Global economic uncertainty due to U.S. tariffs and retaliatory measures could impact Vedanta's performance. The company faces challenges in ramping up alumina production, with delays in achieving the targeted run rate. Vedanta's oil and gas production was impacted by natural declines in certain fields, affecting overall output. The demerger process involves complex approvals, including the transfer of mining leases, which could delay completion. Despite achieving high revenue, Vedanta Ltd (BOM:500295) fell short of its EBITDA target for FY '25 due to higher alumina prices and other operational challenges. Q: What is the current status and future outlook for Vedanta's alumina production capacity? A: Deshnee Naidoo, CEO, explained that the first 1.5 million tonne train is in production, with current production just under 2 million tonnes. The goal is to reach a run rate of close to 4 million tonnes by the end of the fiscal year, with total production for the year just over 3 million tonnes. Sunil Gupta, COO of Vedanta Aluminum, added that they are prepared to source bauxite from various domestic and imported sources to meet production targets. Q: How is Vedanta addressing the demerger process, particularly concerning the transfer of mining leases? A: Deshnee Naidoo, CEO, confirmed that the process of transferring mining leases is part of the overall approval plan. The team has started the necessary processes, and they remain confident in completing the demerger by September 2025. Q: What are Vedanta's plans for reducing debt at Vedanta Resources, and how will this impact future financial obligations? A: Ajay Goel, CFO, stated that Vedanta Resources aims to reduce debt by $3 billion over two years, primarily through operating free cash flows. For FY '26, the cash requirement is about $1.4 billion to $1.5 billion, with sources including brand fees and dividends. The company plans to deleverage by $600 million in the current fiscal year. Q: Can you provide an update on the progress of the Konkona copper mine and any plans to integrate it into the Indian entity? A: Chris Griffith, CEO of Vedanta Zinc International & Vedanta Copper, reported that the Konkona copper mine is ramping up well, with production expected to exceed 150,000 tonnes in 2026. The focus remains on ramping up production, and there are no immediate plans to integrate it into the Indian entity. Q: What is the expected impact of bauxite and alumina price changes on Vedanta's cost of production in FY '26? A: Anup Agarwal, CFO of Vedanta Aluminium, noted that the cost of production is expected to decrease due to lower imported alumina prices and increased captive sourcing. The company anticipates a reduction in costs by $25 to $50 per tonne in the first quarter, with further improvements expected from power cost efficiencies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
