Vedanta Limited, one of India’s leading mining and metals conglomerates, has unveiled a bold capital expenditure plan ranging between $1.5 billion and $1.7 billion for FY 2024-25. This marks a strategic increase from the previous year’s $1.5 billion investment, reinforcing the company’s intent to strengthen its position across key verticals such as aluminium, power, zinc, oil & gas, and steel.
Strategic Capital Allocation Across Core Businesses
Vedanta will channel these investments to accelerate capacity expansions and operational efficiencies across its core segments. The aluminium and power businesses will receive up to $700 million, while the zinc segment is set to benefit from $400–450 million.
“Many of the strategic projects in zinc and aluminium will boost volume, reduce costs, and enhance output at ESL. These are expected to materialize between Q3 and Q4 this fiscal year, further strengthening our operational performance going into the next year,” said Arun Misra, Executive Director, Vedanta.
Significant developments include the smelter expansion at Bharat Aluminium Company, the steel facility scaling to three million tons, and the Lanjigarh alumina refinery ramping up to five million tons, reflecting Vedanta’s aggressive push toward integrated growth.
Strong Operational Performance in FY 2024-25
Vedanta delivered an impressive financial performance, reporting a consolidated EBITDA of ₹43,541 crore, up 37% year-on-year, marking its second-highest ever. Revenue surged to a record ₹1.51 lakh crore, fueled by all-time high production volumes in aluminium and zinc.
“This year, we’re targeting a 10% increase in volume and a 10% reduction in costs. This will translate to nearly 20% higher profitability, driven purely by operational improvements,” said Ajay Goel, Chief Financial Officer.
Strengthening Financial Health Through Deleveraging
Vedanta has complemented its robust operational performance with a disciplined approach to deleveraging. The company trimmed its net debt to ₹53,521 crore as of March-end, down from ₹57,358 crore a year ago. Consequently, the net debt-to-EBITDA ratio improved to 1.2 times, from 1.5 times, underscoring enhanced fiscal discipline.
“With increased volumes and reduced costs, our operating free cash flows are not only funding growth but also enabling us to further delever both Vedanta India and Vedanta Resources,” Goel emphasized.
Hindustan Zinc Gears Up for Expansion
Vedanta’s subsidiary, Hindustan Zinc, is also scaling operations significantly. The company aims to increase its production capacity from 1.15 million tons to 2 million tons. This aligns with the group’s overarching strategy of volume-led growth.
Outlook: Positioned for Sustainable Growth
Vedanta’s aggressive capital investment, improved operational efficiency, and focus on financial prudence signal a positive trajectory. This sets a strong outlook for FY 2024-25. Businessoutreach.in reports that the company is deepening its leadership in the Indian industrial sector. Its forward-looking strategy will unlock sustained growth and value creation.
