Vedanta's Strategy to Achieve $10 Billion EBITDA Revealed

15 Jun, 2024

Vedanta's Strategy to Achieve $10 Billion EBITDA Revealed

Mining conglomerate Vedanta Group is targeting significant growth with a projected USD 6 billion pre-tax profit for the next fiscal year, aiming to escalate to USD 7-7.5 billion thereafter. Ajay Goel, CFO of Vedanta Limited, outlined their strategy at an analysts' meeting, emphasizing the focus on operational efficiencies and cost optimization across their businesses. For the current fiscal year FY24, Vedanta anticipates achieving nearly USD 5 billion in EBITDA, with operational EBITDA adjusted to USD 4.4 billion after excluding one-time gains from the Cairn arbitration.

The ambitious target of USD 6 billion EBITDA reflects a substantial 35% increase, driven primarily by cost optimization measures contributing 15%. Additionally, price increases in value-added aluminum products and production volume ramp-ups across their business units will contribute 8% each to this growth. Vedanta's proactive approach aims to leverage existing strengths to enhance profitability, positioning itself robustly in the mining sector.

This strategic move underscores Vedanta's commitment to sustainable growth through operational excellence and market-driven strategies, bolstering its competitive edge in the global mining industry.