Vedanta Resources PLC

Cost efficient zinc and oil businesses. Fair diversity of businesses. Scope to significantly improve the scale and cost profile of aluminum operations. High regulatory risks in countries such as India and Zambia. Exposure to volatile commodity prices. High debt because of debt-funded growth in the past. Positive free operating cash flows supported by reduced capital expenditure. Large cash balance at two operating companies that hold the Indian zinc and oil and gas operations. Complex organizational structure that adversely affects cash flow fungibility and deleveraging. The positive outlook reflects our expectations that Vedanta Resources PLC's operating and financial performance will improve over the next six to nine months owing to a rise in commodity prices as well as continuing ramp-up of

...Outlook: Positive The positive outlook reflects our expectations that Vedanta Resources PLC's operating and financial performance will improve over the next six to nine months owing to a rise in commodity prices as well as continuing ramp-up of the company's aluminum operations. The outlook also reflects our expectation that Vedanta Resources' financial flexibility will improve post the completion of the merger between its immediate subsidiary Vedanta Ltd. and step down subsidiary Cairn India Ltd....

Full Report