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| Rating Rationale |
| September 30, 2022 | Mumbai |
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Detailed Rationale
CRISIL Ratings has reaffirmed its ‘CRISIL AA/Stable/CRISIL A1+’ ratings on the bank facilities and debt instruments of Vedanta Limited (Vedanta).
The ratings continue to reflect the strong business risk profile of Vedanta, driven by its diversified presence across commodities; cost-efficient operations in the domestic zinc and oil and gas businesses; robust profitability in the aluminium business; and expected strong volume growth over the medium term with capital allocation focused on the value-accretive zinc, aluminium and oil and gas businesses. These strengths are partially offset by large debt, large capital expenditure (capex) and dividend payouts to support the debt servicing of parent Vedanta Resources Ltd (VRL; rated 'B-/Stable' by S&P Global Ratings), and susceptibility to volatility in commodity prices and regulatory changes.
Vedanta has strong operating profitability, driven by healthy commodity prices, volume growth across businesses, and sustained cost efficiency, especially in the aluminium business. It reported Earnings before interest, tax, depreciation and amortisation (Ebitda) of ~Rs 45,000 crore for fiscal 2022 (~Rs 27,500 crore in fiscal 2021), in line with the expectation of CRISIL Ratings. While commodity prices have moderated this fiscal, they remain higher than the pre-pandemic levels. The Ebitda is thus expected to remain healthy at ~Rs 40,000 crore in fiscal 2023, which will help improve free cash flow and return on capital employed over the medium term. During the first quarter of fiscal 2023, the company reported consolidated Ebitda of ~Rs 10,200 crore, up ~2% on-year. The management is likely to utilise cash accrual to reduce consolidated debt (including debt of VRL) and to strengthen ability to withstand any decline in commodity prices.
Strong growth in operating accrual and reduction in consolidated gross and net debt improved net leverage to 2.2 times as on March 31, 2022, from 3.1 times a year earlier. The ratio should remain below 2.5 times over the medium term.
The promoters have been looking to improve the corporate structure by increasing their shareholding in Vedanta. Between December 2020 and December 2021, they increased their stake to 69.7% from 50.1%, funded through debt of nearly USD 2.4 billion. While this has helped reduce dividend payout to minority shareholders and enhanced financial flexibility, it has increased the consolidated debt. However, improved profitability in fiscal 2022 supported increased dividend payout by Vedanta during the fiscal. This helped cut down debt at VRL to USD 8.9 billion as of March 2022 from USD 9.4 billion as of December 2021, supporting consolidated deleveraging. While the promoter stake has increased by ~19.5% since December 2020 (resulting in a better corporate structure for Vedanta), CRISIL Ratings understands that the promoters may explore further improvement in the corporate structure of the group. That said, CRISIL Ratings notes the management focus on deleveraging, articulated through the recent capital allocation policy and other public interactions, including the intent to reduce the debt of VRL by ~USD 4 billion over the medium term, with principal debt reduction of at least USD 1 billion in fiscal 2023. Thus, consolidated gross and net debt (including debt of VRL) should reduce in fiscal 2023 and thereafter. Further updates on actions by the promoters to enhance the corporate structure and the impact on leverage will be key rating sensitivity factors.
VRL serviced debt in fiscal 2022 through refinancing and dividends. Dividends from Vedanta will continue to help VRL meet its interest obligation. That said, VRL faces near to medium term refinancing risk with scheduled debt obligation of USD 2.7 billion in fiscal 2023 and ~USD 2.9 billion in fiscal 2024. CRISIL Ratings believes VRL is expected to refinance/part repay the same in a timely manner, supported by improved operating profitability of Vedanta and increased shareholding of the promoters in the company. So far in fiscal 2023, Vedanta has announced dividend of more than Rs 18,900 crore, which will result in dividend proceeds of ~USD 1.6 billion to VRL. Besides, during May-June 2022, VRL raised USD 700 million from banks, which, along with dividends receipts, will support debt servicing in the first half of the fiscal. However, any delay in timely refinancing of debt at VRL, going ahead, will be a key monitorable.
As per the capital allocation policy of Vedanta and as articulated by the management, potential strategic growth acquisition of Bharat Petroleum Corporation Ltd (BPCL), if it happens, will not be through Vedanta or its parent and will not be linked with the balance sheets of Vedanta or its parent entities. However, further developments on this front remain a monitorable.
The Vedanta group and Foxconn recently formed a joint venture to invest USD 19.5 billion over the long term for setting up semiconductor and display production plants in Gujarat. However, CRISIL Ratings notes that Vedanta and VRL will not have any exposure to the proposed semiconductor and display manufacturing business. The proposed investment will be done at Volcan Investments Ltd (holding company of VRL).
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Analytical Approach
CRISIL Ratings has combined the business and financial risk profiles of Vedanta and its subsidiaries, collectively known as the Vedanta group, as they have operational and financial linkages. Key subsidiaries include Hindustan Zinc Ltd (HZL; 'CRISIL AAA/Stable/CRISIL A1+’); the group's zinc business in Namibia and South Africa (termed Zinc International); Bharat Aluminium Company Ltd (Balco; 'CRISIL A1+’); Talwandi Sabo Power Ltd (‘CRISIL AA (CE)/Stable/CRISIL A1+ (CE)’) and ESL Steel Ltd (‘CRISIL AA/Stable/CRISIL A1+’).
CRISIL Ratings has included the debt of VRL (estimated at ~USD 8.9 billion or ~Rs 67,500 crore as on March 31, 2022) while calculating the adjusted debt. This is because, despite no legal recourse of VRL’s debt holders to Vedanta, this debt needs to be serviced using the dividend outflow from Vedanta or refinanced, based on the implicit strength of the investments held by VRL, primarily Vedanta.
Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.
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Key Rating Drivers & Detailed Description
Strengths:
- Diversified business risk profile
The Vedanta group is present in various businesses spanning zinc, lead, silver, aluminium, oil and gas, iron ore, power and steel. The group is among the largest producers in all these segments and thus commands a strong market position in India. A well-diversified business risk profile cushions it from commodity-specific cyclicality and risks.
- Cost-efficiency in key businesses
The domestic zinc, lead and silver businesses are supported by low cost of production, large reserves and continued resource addition. Profitability in the oil and gas business is aided by low operating cost and a business model that ensures recovery of capex. Cash flow in this business will be driven by capex-led volume growth over the medium term.
The Delhi High Court, through its order dated March 26, 2021, had ruled in favour of the government in the dispute over additional 10% of petroleum profit demanded by the government under the profit-sharing contract (PSC) extension policy for the Rajasthan block. This had resulted in increased cash outflow of ~USD 60 million in fiscal 2021 for Vedanta. While the court order will result in reduced profit margin for the company’s oil and gas business, profitability should remain healthy. Notably, the government has been providing only short-term extensions for continuity of operations in the Rajasthan block. Furthermore, additional claim of dues related to disallowed cost, raised by the Directorate General of Hydrocarbons, is under arbitration. While CRISIL Ratings understands from Vedanta that the government is likely to approve the final PSC in the near term (with effect from May 15, 2020), it remains a key monitorable.
- Robust operating profitability in the aluminium business
Improved linkage coal sourcing (over 70% in fiscal 2021 from 45% in fiscal 2018), reduced coal prices, and lower cost of imported alumina had improved cost efficiency for the aluminium business (Ebitda of over USD 525 per tonne during fiscal 2021 against less than USD 150 per tonne in fiscal 2020). With improved production rates, continued cost efficiency and strong aluminium realisation, the Ebitda per tonne for the aluminium business of Vedanta further increased to more than USD 1,000 during fiscal 2022.
However, production cost rose to USD 2,653 per tonne in the first quarter of fiscal 2023 from USD 2,182 in the fourth quarter of fiscal 2022 (USD 1,858 in fiscal 2022), driven by increased power cost (to ~USD 1,200 per tonne in the first quarter of fiscal 2023 from ~USD 800 in the fourth quarter of fiscal 2022) due to lower materialisation of linkage coal and higher coal cost. The higher production cost, along with lower aluminium realisations, resulted in reduced Ebitda margin for the aluminium business with Ebitda declining to USD 527 per tonne during the first quarter of fiscal 2023 from USD 1,185 in the last quarter of fiscal 2022.
The cost efficiency should improve over the medium term with gradual improvement in domestic coal availability, and operationalisation of captive coal mines at Jamkhani coal mine, Radhikapur (west) coal block and Kuraloi (A) north coal block in Odisha over the medium term, and focus on increasing local bauxite and alumina sourcing. Moreover, Vedanta has emerged as the highest bidder for Ghorgharpalli and its Dip Extension Coal Block in Sundargarh, Odisha, which will improve coal security for the aluminium business. This, along with the ongoing expansion in refinery capacity to 5 million tonne per annum (MTPA) from 2 MTPA, should enhance the operating efficiency.
- Expected strong volume growth over the medium term driven by capital allocation towards value-accretive zinc, aluminium and oil and gas businesses
Increased mined metal capacity of 1.2 MTPA in domestic zinc, along with ramp-up of Gamsberg’s operations in Zinc International, will support the ramp-up in volume. Furthermore, expected addition of wells and surface facilities during fiscal 2023 may lead to higher volume in the oil and gas business over the medium term. Strong volume growth is likely to make the overall business risk profile more resilient. Vedanta is undertaking brownfield expansion of its aluminium smelter capacity by 414 kilo tonne per annum (under Balco). Expansion of aluminium refining capacity to 6 MTPA from 2 MTPA is expected to be completed by fiscal 2024 and will support volume growth over the medium term.
Weaknesses:
- Large dividend payout to support debt servicing at VRL, along with significant capex, resulting in high leverage in the past; expected to improve
Continued assistance through dividend payout to VRL to support the parent's debt servicing has resulted in significant cash outflow to minority shareholders. This, along with sizeable annual capex (about Rs 6,000 crore and Rs 9,000 crore in fiscals 2021 and 2020, respectively) and large consolidated net debt (including VRL) led to elevated net leverage of 3.1 times as on March 31, 2021 (3.8 times a year earlier). While net debt at Vedanta reduced by more than Rs 14,000 crore in the five quarters till March 2022, the debt at VRL increased due to stake increase in Vedanta. Capex (including sustenance capex) increased to more than Rs 10,500 crore in fiscal 2022 and is expected to rise over the medium term (expected at Rs 13,000-19,000 crore in fiscals 2023 and 2024, largely in the aluminium, zinc and oil and gas businesses). However, healthy profitability supported capex, and, along with reduction in consolidated debt, helped improve net leverage to 2.2 times as on March 31, 2022, and is expected to keep the leverage below 2.5 times over the medium term. However, profitability remains susceptible to volatility in the prices of metals and oil and gas. Any material acquisition or larger-than-expected cash outflow to support VRL will remain key monitorables.
- Exposure to changes in regulations
The businesses of Vedanta are vulnerable to regulatory risk. The copper smelting plant at Thoothukkudi, Tamil Nadu, has been shut since May 2018 following a directive from the Tamil Nadu Pollution Control Board. Suspension of iron ore mining operations in Goa currently, and in Karnataka in the past, have adversely impacted the iron ore business. Furthermore, the March 2021 order of the Delhi High Court on PSC extension, ruling against the company, will result in reduced profit margin for the oil and gas business
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Liquidity: Strong
Cash balance was Rs 34,342 crore as on June 30, 2022 (excluding dividend payout of ~Rs 7,250 in July 2022). However, a part of the cash is held by HZL, which is accessed through dividends, thus resulting in outflow towards minority shareholders. Liquidity is also supported by large, unutilised bank limit (~Rs 11,200 crore as on June 30, 2022).
Expected cash accrual of over Rs 30,000 crore in fiscal 2023 should comfortably cover term debt obligation of more than Rs 9,600 crore during the fiscal. In addition, flexibility towards capex supports liquidity. Vedanta may also look to refinance a significant portion of its principal debt obligation in fiscal 2023, based on its strong refinancing track record.
VRL has annual interest expense of ~Rs 5,000 crore (~USD 650 million) towards its outstanding debt, which will be met largely through dividends from Vedanta. The debt obligation of the parent in fiscal 2022 was met through refinancing and dividend from Vedanta. That said, VRL faces refinancing risk over the medium term with scheduled debt obligation of USD 2.7 billion in fiscal 2023 and ~USD 2.9 billion in fiscal 2024. However, CRISIL Ratings believes VRL will refinance/part repay the same in a timely manner, supported by improved operating profitability of Vedanta and increased holding of the promoters in Vedanta. So far in fiscal 2023, Vedanta has paid dividend of more than Rs 18,900 crore, resulting in dividend proceeds of ~USD 1.6 billion for VRL. Besides, during May-June 2022, VRL raised USD 700 million from banks, which, along with the dividends receipts, supported debt servicing in the first half of fiscal 2023.
Environment, social, and governance (ESG) profile
Vedanta has a dominant position in the metals and mining sector, and has diversified its business risk profile with presence across multiple commodities such as zinc, aluminium, oil and gas, and iron ore. However, for the ESG assessment, CRISIL Ratings has evaluated Vedanta’s top three business segments (zinc, aluminium, and oil and gas) which, on a combined basis, contribute more than 85% to the consolidated operating profit.
The ESG profile supports the already strong credit risk profile of Vedanta. The metal and mining sector has a significant impact on the environment owing to high greenhouse gas (GHG) emissions, waste generation and water consumption. This is because of the energy-intensive manufacturing process and its high dependence on natural resources such as coal. The sector also has a significant social impact because of its large workforce across its operations and value chain partners, and also as its operations affect the local community and involve health hazards.
Key ESG highlights:
- Vedanta aims to become carbon neutral by 2050 or sooner—it envisages 20% reduction in GHG emissions intensity by 2025 from the 2012 baseline, and 25% reduction in its absolute carbon emission intensity by 2030. During fiscal 2022, Vedanta reduced GHG emissions to 62.83 million TCo2e..
- The company has been improving its water recycling rate and recycled 30.6% of total water consumed in fiscal 2022. It has set a target to achieve net water positivity by 2030. The company recycled 98% of its high-volume, low-toxicity waste in fiscal 2022 (94% in fiscal 2021), and targets zero net waste by 2025.
- The loss time injury frequency rate for the zinc business was 0.79 in fiscal 2022 against 0.97 in the previous fiscal. It was 0.41 for the aluminum business, 0.85 for the iron ore business and 0.80 for the steel business. The company targets zero harm and fatalities.
- Gender diversity is 11.54% and the company aims to increase the share of women employees to 20% by 2030.
- The governance structure is characterised by 50% of the board comprising independent directors (none with tenure exceeding 10 years), split in chairman and CEO positions, dedicated investor grievance redressal mechanism and healthy disclosures.
- Few regulatory issues, mainly related to environmental concerns, have led to suspension of some businesses (copper business in Tamil Nadu and iron ore mining in Goa due to state-wide ban on mining in Goa) in the past few years. These events have also had social impact mainly due to job losses. These matters are sub-judice.
There is growing importance of ESG among investors and lenders. The commitment of Vedanta to ESG principles will play a key role in enhancing stakeholder confidence, given the high share of market borrowings in its debt and access to both domestic and foreign capital markets (mainly by VRL).
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Outlook: Stable
The credit risk profile should continue to benefit from strong commodity prices, low cost of production in key businesses, and expected volume growth resulting in high operating profitability. Likely increase in profitability and utilisation of free cash flow towards debt reduction should support deleveraging and sustained improvement in the financial risk profile
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Rating Sensitivity factors
Upward factors
- Higher-than-expected Ebitda on account of ramp-up in volume with continued cost efficiency across businesses, and improving business resilience
- Sustained deleveraging with material reduction in consolidated net debt, resulting in sustenance of net debt to Ebitda ratio below 1.8 times
Downward factors
- Significantly lower-than-expected Ebitda because of high cost of production, slower volume ramp-up or lower realisation
- Delay in meaningful correction in financial leverage with net debt to Ebitda ratio sustaining above 2.5-2.7 times
- Sustained negative free cash flow (post capex) or any incremental investment or support to VRL or Volcan Investments Ltd
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About the Company
VRL holds 69.7% stake in Vedanta and has diversified operations across metals, mining, power, and oil and gas.
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Capacity
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Location
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2.3 MTPA aluminium smelters in VDL and Balco
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Jharsuguda in Odisha
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2.0 MTPA alumina refinery
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Lanjigarh in Odisha
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1,980 megawatt independent power plant
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Talwandi Sabo, Punjab
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1.2 MTPA zinc/silver mines and 0.9 mtpa zinc smelters
5.6 MTPA zinc mines and 290 kilo tonne zinc smelters
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Rajasthan
South Africa, Namibia
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1,194 million barrels of oil equivalent oil and gas reserves
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Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Assam, Tamil Nadu and Tripura
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1.5 MTPA long-steel rolling in Electrosteel Steel (held 95.5%)
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Bokaro in Jharkhand
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Key Financial Indicators
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Particulars
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Unit
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2022
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2021
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Operating income
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Rs crore
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131,192
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89,135
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Profit after tax (PAT)
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Rs crore
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23,709
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15,032
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PAT margin
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%
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18.1
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16.9
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Adjusted debt/adjusted networth
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Times
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1.59
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1.54
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Interest coverage
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Times
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9.45
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5.73
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During the first quarter of fiscal 2023, consolidated operating income was Rs 38,622 crore and net profit was Rs 5,592 crore, against Rs 28,412 crore and Rs 5,282 crore, respectively, in the corresponding period of fiscal 2022
Note: These reflect CRISIL Ratings-adjusted consolidated financials
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Any other information: Not applicable
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Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.
CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.
For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.
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Annexure - Details of Instrument(s)
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ISIN
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Name of instrument
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Date of allotment
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Coupon rate (%)
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Maturity
date
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Issue size
(Rs crore)
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Complexity level
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Rating assigned
with outlook
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INE205A07170
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Debentures
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9-Dec-19
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9.20%
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9-Dec-22
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750
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Simple
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CRISIL AA/Stable
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INE205A07196
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Debentures
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25-Feb-20
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9.20%
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25-Feb-30
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2000
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Simple
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CRISIL AA/Stable
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INE205A07212
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Debentures
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31-Dec-21
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7.68%
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31-Dec-24
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1000
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Simple
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CRISIL AA/Stable
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INE205A07220
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Debentures
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29-Jun-22
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8.74%
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29-Jun-32
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4089
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Simple
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CRISIL AA/Stable
|
|
NA
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Debentures%
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NA
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NA
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NA
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2911
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Simple
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CRISIL AA/Stable
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|
NA
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Commercial Paper
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NA
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NA
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7-365 days
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10000
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Simple
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CRISIL A1+
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NA
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Fund-Based Facilities**
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NA
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NA
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NA
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7,655
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Not applicable
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CRISIL AA/Stable
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NA
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Non-Fund Based Limit*
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NA
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NA
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NA
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17,110
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CRISIL A1+
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NA
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Non-Fund Based Limit##
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NA
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NA
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NA
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500
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CRISIL AA/Stable
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NA
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Term Loan
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21-Apr-14
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NA
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31-Mar-31
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364
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CRISIL AA/Stable
|
|
NA
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Term Loan
|
25-Jul-14
|
NA
|
30-Sep-22
|
313
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CRISIL AA/Stable
|
|
NA
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Term Loan
|
25-Jul-14
|
NA
|
30-Sep-25
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968
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CRISIL AA/Stable
|
|
NA
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Term Loan
|
21-Apr-14
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NA
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30-Jun-31
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383
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CRISIL AA/Stable
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|
NA
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Term Loan
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03-Aug-18
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NA
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31-Mar-28
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2578
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CRISIL AA/Stable
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|
NA
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Term Loan
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27-Jul-18
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NA
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30-Sep-24
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216
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CRISIL AA/Stable
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|
NA
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Term Loan
|
14-Aug-18
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NA
|
14-Nov-23
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450
|
CRISIL AA/Stable
|
|
NA
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Term Loan
|
30-Nov-19
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NA
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31-Mar-25
|
350
|
CRISIL AA/Stable
|
|
NA
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Term Loan
|
30-Sep-18
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NA
|
30-Dec-28
|
393
|
CRISIL AA/Stable
|
|
NA
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Foreign Currency Term Loan$
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30-Sep-19
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NA
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30-Nov-22
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178
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CRISIL AA/Stable
|
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NA
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Foreign Currency Term Loan$
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04-Mar-20
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NA
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31-Mar-23
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256
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CRISIL AA/Stable
|
|
NA
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Foreign Currency Term Loan$
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30-Mar-22
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NA
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31-Mar-26
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1875
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CRISIL AA/Stable
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|
NA
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Term Loan
|
12-Mar-20
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NA
|
30-Jun-25
|
200
|
CRISIL AA/Stable
|
|
NA
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Term Loan
|
31-Oct-20
|
NA
|
31-Jan-25
|
98
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
26-Aug-21
|
NA
|
30-Sep-26
|
1866
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
30-Aug-21
|
NA
|
30-Sep-26
|
468
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
15-Sep-21
|
NA
|
30-Sep-26
|
468
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
28-Sep-21
|
NA
|
30-Sep-26
|
1104
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
28-Dec-21
|
NA
|
30-Sep-27
|
7,760
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
13-Dec-21
|
NA
|
30-Sep-26
|
291
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
14-Dec-21
|
NA
|
30-Sep-26
|
720
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
31-Dec-21
|
NA
|
30-Sep-27
|
985
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
31-Mar-22
|
NA
|
31-Mar-28
|
1000
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
31-Mar-22
|
NA
|
31-Mar-25
|
350
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
29-Apr-22
|
NA
|
31-Dec-26
|
1225
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
30-Jun-22
|
NA
|
31-Mar-27
|
1287
|
CRISIL AA/Stable
|
|
NA
|
Term Loan
|
18-Jul-22
|
NA
|
30-Jun-27
|
1000
|
CRISIL AA/Stable
|
|
NA
|
Proposed Long Term Bank Loan Facility
|
NA
|
NA
|
NA
|
520.5
|
CRISIL AA/Stable
|
**Fund-based limits are completely interchangeable with non-fund-based limit
* Non-fund-based limit of Rs 2,000 crore interchangeable with fund-based limit
## Capex letter of credit limit interchangeable with operational non-fund-based limit
% Yet to be placed
$ Foreign currency non-resident (FCNR) loans
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Annexure – List of entities consolidated
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Name of entity
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Type of consolidation
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Rationale for consolidation
|
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Hindustan Zinc Ltd
|
Full
|
Significant financial and operational linkages
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Bharat Aluminium Company Ltd
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Full
|
Significant financial and operational linkages
|
|
MALCO Energy Ltd
|
Full
|
Significant financial and operational linkages
|
|
Talwandi Sabo Power Ltd
|
Full
|
Significant financial and operational linkages
|
|
Sesa Resources Ltd
|
Full
|
Significant financial and operational linkages
|
|
Sesa Mining Corporation Ltd
|
Full
|
Significant financial and operational linkages
|
|
Sterlite Ports Ltd
|
Full
|
Significant financial and operational linkages
|
|
Maritime Ventures Pvt Ltd
|
Full
|
Significant financial and operational linkages
|
|
Goa Sea Port Pvt Ltd
|
Full
|
Significant financial and operational linkages
|
|
Vizag General Cargo Berth Pvt Ltd
|
Full
|
Significant financial and operational linkages
|
|
Paradip Multi Cargo Berth Pvt Ltd
|
Full
|
Significant financial and operational linkages
|
|
Copper Mines of Tasmania Pty Ltd
|
Full
|
Significant financial and operational linkages
|
|
Thalanga Copper Mines Pty Ltd
|
Full
|
Significant financial and operational linkages
|
|
Monte Cello B V
|
Full
|
Significant financial and operational linkages
|
|
Bloom Fountain Ltd
|
Full
|
Significant financial and operational linkages
|
|
Twinstar Energy Holding Ltd
|
Full
|
Significant financial and operational linkages
|
|
Twinstar Mauritius Holding Ltd
|
Full
|
Significant financial and operational linkages
|
|
Western Clusters Ltd
|
Full
|
Significant financial and operational linkages
|
|
Sterlite (USA) Inc
|
Full
|
Significant financial and operational linkages
|
|
Fujairah Gold FZC
|
Full
|
Significant financial and operational linkages
|
|
THL Zinc Ventures Ltd
|
Full
|
Significant financial and operational linkages
|
|
THL Zinc Ltd
|
Full
|
Significant financial and operational linkages
|
|
THL Zinc Holding B V
|
Full
|
Significant financial and operational linkages
|
|
THL Zinc Namibia Holdings (Proprietary) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Skorpion Zinc (Proprietary) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Skorpion Mining Company (Proprietary) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Namzinc (Proprietary) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Amica Guesthouse (Proprietary) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Rosh Pinah Healthcare (Proprietary) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Black Mountain Mining (Proprietary) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Vedanta Lisheen Holdings Ltd
|
Full
|
Significant financial and operational linkages
|
|
Vedanta Lisheen Mining Ltd
|
Full
|
Significant financial and operational linkages
|
|
Killoran Lisheen Mining Ltd
|
Full
|
Significant financial and operational linkages
|
|
Killoran Lisheen Finance Ltd
|
Full
|
Significant financial and operational linkages
|
|
Lisheen Milling Ltd
|
Full
|
Significant financial and operational linkages
|
|
Vedanta Exploration Ireland Ltd
|
Full
|
Significant financial and operational linkages
|
|
Lisheen Mine Partnership
|
Full
|
Significant financial and operational linkages
|
|
Lakomasko BV
|
Full
|
Significant financial and operational linkages
|
|
Cairn India Holdings Ltd
|
Full
|
Significant financial and operational linkages
|
|
Cairn Energy Hydrocarbons Ltd
|
Full
|
Significant financial and operational linkages
|
|
Cairn Exploration (No. 2) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Cairn Energy Gujarat Block 1 Ltd
|
Full
|
Significant financial and operational linkages
|
|
Cairn Energy Discovery Ltd
|
Full
|
Significant financial and operational linkages
|
|
Cairn Energy India Pty Ltd
|
Full
|
Significant financial and operational linkages
|
|
CIG Mauritius Holdings Pvt Ltd
|
Full
|
Significant financial and operational linkages
|
|
CIG Mauritius Pvt Ltd
|
Full
|
Significant financial and operational linkages
|
|
Cairn Lanka (Pvt) Ltd
|
Full
|
Significant financial and operational linkages
|
|
Cairn South Africa Proprietary Ltd
|
Full
|
Significant financial and operational linkages
|
|
Avanstrate (Japan) Inc (ASI)
|
Full
|
Significant financial and operational linkages
|
|
Avanstrate (Korea) Inc
|
Full
|
Significant financial and operational linkages
|
|
Avanstrate (Taiwan) Inc
|
Full
|
Significant financial and operational linkages
|
|
Sesa Sterlite Mauritius Holdings Ltd
|
Full
|
Significant financial and operational linkages
|
|
Vedanta Star Ltd
|
Full
|
Significant financial and operational linkages
|
|
RoshSkor Township (Pty) Ltd
|
Proportionate
|
Equity method
|
|
Gaurav Overseas Pvt Ltd
|
Proportionate
|
Equity method
|
|
Rampia Coal Mines and Energy Pvt Ltd
|
Proportionate
|
Equity method
|
|
Madanpur South Coal Company Ltd
|
Proportionate
|
Equity method
|
|
Goa Maritime Pvt Ltd
|
Proportionate
|
Equity method
|
| |
| |
| Annexure - Rating History for last 3 Years |
| |
Current |
2022 (History) |
2021 |
2020 |
2019 |
Start of 2019 |
| Instrument |
Type |
Outstanding Amount |
Rating |
Date |
Rating |
Date |
Rating |
Date |
Rating |
Date |
Rating |
Rating |
| Fund Based Facilities |
LT |
35321.5 |
CRISIL AA/Stable |
12-08-22 |
CRISIL AA/Stable |
25-11-21 |
CRISIL AA-/Positive |
28-10-20 |
CRISIL A1+ / CRISIL AA-/Stable |
19-02-19 |
CRISIL AA/Stable |
CRISIL AA/Positive |
| |
|
|
-- |
29-07-22 |
CRISIL AA/Stable |
27-10-21 |
CRISIL AA-/Positive |
17-06-20 |
CRISIL AA/Negative / CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
06-05-22 |
CRISIL AA/Stable |
03-05-21 |
CRISIL AA-/Stable |
28-05-20 |
CRISIL AA/Negative / CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
18-04-22 |
CRISIL AA/Stable |
08-02-21 |
CRISIL A1+ / CRISIL AA-/Stable |
03-04-20 |
CRISIL AA/Negative |
|
-- |
-- |
| |
|
|
-- |
25-02-22 |
CRISIL AA/Stable |
|
-- |
10-01-20 |
CRISIL AA/Stable |
|
-- |
-- |
| |
|
|
-- |
25-01-22 |
CRISIL AA-/Positive |
|
-- |
|
-- |
|
-- |
-- |
| Non-Fund Based Facilities |
ST/LT |
17610.0 |
CRISIL A1+ / CRISIL AA/Stable |
12-08-22 |
CRISIL A1+ / CRISIL AA/Stable |
25-11-21 |
CRISIL AA-/Positive / CRISIL A1+ |
28-10-20 |
CRISIL A1+ / CRISIL AA-/Stable |
19-02-19 |
CRISIL A1+ / CRISIL AA/Stable |
CRISIL A1+ |
| |
|
|
-- |
29-07-22 |
CRISIL A1+ / CRISIL AA/Stable |
27-10-21 |
CRISIL AA-/Positive / CRISIL A1+ |
17-06-20 |
CRISIL AA/Negative / CRISIL A1+ |
|
-- |
Withdrawn |
| |
|
|
-- |
06-05-22 |
CRISIL A1+ / CRISIL AA/Stable |
03-05-21 |
CRISIL A1+ / CRISIL AA-/Stable |
28-05-20 |
CRISIL AA/Negative / CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
18-04-22 |
CRISIL A1+ / CRISIL AA/Stable |
08-02-21 |
CRISIL A1+ / CRISIL AA-/Stable |
03-04-20 |
CRISIL AA/Negative / CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
25-02-22 |
CRISIL A1+ / CRISIL AA/Stable |
|
-- |
10-01-20 |
CRISIL A1+ / CRISIL AA/Stable |
|
-- |
-- |
| |
|
|
-- |
25-01-22 |
CRISIL AA-/Positive / CRISIL A1+ |
|
-- |
|
-- |
|
-- |
-- |
| Commercial Paper |
ST |
10000.0 |
CRISIL A1+ |
12-08-22 |
CRISIL A1+ |
25-11-21 |
CRISIL A1+ |
28-10-20 |
CRISIL A1+ |
19-02-19 |
CRISIL A1+ |
CRISIL A1+ |
| |
|
|
-- |
29-07-22 |
CRISIL A1+ |
27-10-21 |
CRISIL A1+ |
17-06-20 |
CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
06-05-22 |
CRISIL A1+ |
03-05-21 |
CRISIL A1+ |
28-05-20 |
CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
18-04-22 |
CRISIL A1+ |
08-02-21 |
CRISIL A1+ |
03-04-20 |
CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
25-02-22 |
CRISIL A1+ |
|
-- |
10-01-20 |
CRISIL A1+ |
|
-- |
-- |
| |
|
|
-- |
25-01-22 |
CRISIL A1+ |
|
-- |
|
-- |
|
-- |
-- |
| Non Convertible Debentures |
LT |
10750.0 |
CRISIL AA/Stable |
12-08-22 |
CRISIL AA/Stable |
25-11-21 |
CRISIL AA-/Positive |
28-10-20 |
CRISIL AA-/Stable |
19-02-19 |
CRISIL AA/Stable |
CRISIL AA/Positive |
| |
|
|
-- |
29-07-22 |
CRISIL AA/Stable |
27-10-21 |
CRISIL AA-/Positive |
17-06-20 |
CRISIL AA/Negative |
|
-- |
-- |
| |
|
|
-- |
06-05-22 |
CRISIL AA/Stable |
03-05-21 |
CRISIL AA-/Stable |
28-05-20 |
CRISIL AA/Negative |
|
-- |
-- |
| |
|
|
-- |
18-04-22 |
CRISIL AA/Stable |
08-02-21 |
CRISIL AA-/Stable |
03-04-20 |
CRISIL AA/Negative |
|
-- |
-- |
| |
|
|
-- |
25-02-22 |
CRISIL AA/Stable |
|
-- |
10-01-20 |
CRISIL AA/Stable |
|
-- |
-- |
| |
|
|
-- |
25-01-22 |
CRISIL AA-/Positive |
|
-- |
|
-- |
|
-- |
-- |
| Preference Shares |
LT |
|
-- |
|
-- |
|
-- |
|
-- |
19-02-19 |
Withdrawn |
CRISIL AA/Positive |
|
| All amounts are in Rs.Cr. |
|
| |
| Annexure - Details of Bank Lenders & Facilities |
| Facility |
Amount (Rs.Crore) |
Name of Lender |
Rating |
| Foreign Currency Term Loan$ |
1875 |
Mashreq Bank Psc. |
CRISIL AA/Stable |
| Foreign Currency Term Loan$ |
434 |
ICICI Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
600 |
ICICI Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
2500 |
HDFC Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
500 |
Deutsche Bank |
CRISIL AA/Stable |
| Fund-Based Facilities** |
200 |
YES Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
150 |
IDBI Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
1000 |
State Bank of India |
CRISIL AA/Stable |
| Fund-Based Facilities** |
1000 |
Bank of Baroda |
CRISIL AA/Stable |
| Fund-Based Facilities** |
200 |
Kotak Mahindra Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
100 |
IndusInd Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
1000 |
Bank of Baroda |
CRISIL AA/Stable |
| Fund-Based Facilities** |
400 |
Axis Bank Limited |
CRISIL AA/Stable |
| Fund-Based Facilities** |
5 |
Standard Chartered Bank Limited |
CRISIL AA/Stable |
| Non-Fund Based Limit* |
1000 |
IDFC FIRST Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
300 |
IndusInd Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
5500 |
State Bank of India |
CRISIL A1+ |
| Non-Fund Based Limit* |
3780 |
ICICI Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
730 |
YES Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
800 |
Axis Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
350 |
DBS Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
1150 |
IDBI Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
3000 |
HDFC Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit* |
500 |
YES Bank Limited |
CRISIL A1+ |
| Non-Fund Based Limit## |
500 |
IndusInd Bank Limited |
CRISIL AA/Stable |
| Proposed Long Term Bank Loan Facility |
520.5 |
Not Applicable |
CRISIL AA/Stable |
| Term Loan |
216 |
Kotak Mahindra Bank Limited |
CRISIL AA/Stable |
| Term Loan |
8109 |
Union Bank of India |
CRISIL AA/Stable |
| Term Loan |
450 |
IndusInd Bank Limited |
CRISIL AA/Stable |
| Term Loan |
1000 |
Canara Bank |
CRISIL AA/Stable |
| Term Loan |
98 |
United Bank Limited |
CRISIL AA/Stable |
| Term Loan |
720 |
Axis Bank Limited |
CRISIL AA/Stable |
| Term Loan |
4810 |
Bank of Baroda |
CRISIL AA/Stable |
| Term Loan |
935 |
Canara Bank |
CRISIL AA/Stable |
| Term Loan |
1104 |
Punjab National Bank |
CRISIL AA/Stable |
| Term Loan |
692.5 |
Axis Bank Limited |
CRISIL AA/Stable |
| Term Loan |
1287 |
Bank of Baroda |
CRISIL AA/Stable |
| Term Loan |
350 |
Citibank N. A. |
CRISIL AA/Stable |
| Term Loan |
1985 |
Indian Bank |
CRISIL AA/Stable |
| Term Loan |
491 |
Indian Overseas Bank |
CRISIL AA/Stable |
| Term Loan |
393 |
ICICI Bank Limited |
CRISIL AA/Stable |
| Term Loan |
1664 |
State Bank of India |
CRISIL AA/Stable |
| Term Loan |
532.5 |
Axis Bank Limited |
CRISIL AA/Stable |
|
This Annexure has been updated on 30-Sep-22 in line with the lender-wise facility details as on 29-Jul-22 received from the rated entity.
**Fund-based limits are completely interchangeable with non-fund-based limit
* Non-fund-based limit of Rs 2,000 crore interchangeable with fund-based limit
## Capex letter of credit limit interchangeable with operational non-fund-based limit
$ Foreign currency non-resident (FCNR) loans
|
| |
| |
Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.
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| | CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisil.com/en/home/our-businesses/ratings/credit-ratings-scale.html
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