Vedanta Ltd Q1 FY24 Earnings Call Analysis

Future growth expectations for Vedanta Limited in sales, revenue, and volumes are highlighted as follows: - Expect steady and progressive improvement over the next 9 months of FY24, supported by key growth projects (Page 6). - Aluminum production is on a strong trajectory with record volumes of 579 kt in Q1, driven by vertical integration projects (Page 5). - Completion of Gamsberg Phase 2 expansion targeted to start production in H2 FY24 (Page 6). - Oil & Gas to exit the year with higher production than the start, through infill wells and new projects (Page 6). - Steel capacity expansion from 1.7 MTPA to 3 MTPA in progress, enhancing production volumes (Page 6). - Strategic entry into semiconductor and display fab business envisaged to diversify portfolio and tap growing markets (Page 3). - Robust domestic demand in autos and infrastructure sectors underpinning volume growth despite global price pressures (Page 7).

- Vedanta Limited has recently refinanced THL Zinc Ventures with external debt of $850 million, substituting previous intercompany debt. - The company is managing its debt with an average maturity of 3 years and an average borrowing cost of 8.7%. - No explicit mention of upcoming equity fundraising was made in the call. - The company has instituted a strategic review of its iron and steel business, with a 3-6 months timeline, which may lead to potential divestment options to generate value. - There is no direct mention of new debt or equity fundraising plans announced presently. - The semiconductor business is under evaluation for capex and funding, with potential government subsidies (50% Capital subsidy from government of India + 40% subsidy from Gujarat government on the subsidy amount), details to be finalized after feasibility study. - Working capital instruments like buyer’s credit and advances from customers are ongoing rolling instruments with cost around 7-8%. In summary, no immediate new fundraising via debt or equity announced, but potential capital raising may come via strategic divestment and semiconductor business developments.