Vedanta Declares Robust Rs. 18 per Share Interim Dividend for FY24

On Monday, the board of Vedanta granted approval for the initial interim dividend of Rs 18 per equity share for the fiscal year 2023-24. The dividend, which corresponds to a significant 1850% of the share’s face value of Rs 1, totals Rs 6,877 crore.

May 30 has been designated as the record date for determining the eligibility of equity shareholders to receive their entitlements, according to the company. The interim dividend will be disbursed within the specified timeframes as mandated by the law, the company stated.

The ex-dividend date for Vedanta shares will occur either on the record date or the day preceding it. On the ex-dividend date, the stock will not include the value of the upcoming dividend payment. This date also determines which shareholders are eligible to receive the dividend payment.

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Over the past 12 months, Vedanta has announced a dividend of Rs 70 per share, leading to an impressive dividend yield of 24.35%.

Vedanta, headquartered in Mumbai, announced a series of dividends for the fiscal year 2023, resulting in a total payout of more than Rs 101.50 per share.

In the March quarter, Vedanta’s profit decreased by 68% due to declining metal prices. The company’s net profit for Q4FY23 was Rs 1,881 crore, a significant decline compared to Rs 5,799 crore in the same period the previous year. The decrease was attributed to a “one-time charge” in Vedanta’s oil and gas business.

Furthermore, the quarterly revenue of Vedanta experienced a decline of 5%, amounting to Rs 37,225 crore. The proportion of revenue derived from the primary aluminium business decreased from 39% to 33%.

Based on data from Trendlyne, the stock is projected to have an average target price of Rs 273.50. The consensus estimate suggests a downside of -4.87% compared to the current levels.

Vedanta shares have demonstrated relatively poor performance this year, with a decline of approximately 9%. This decrease aligns with the generally subdued returns observed in the metals sector.

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Vedanta Resources Ltd (VRL), the UK-based parent company of Vedanta Ltd, is reportedly in discussions with Deutsche Bank, JPMorgan, Barclays, and other global lenders to secure a loan of $500-600 million. This loan is being sought after facing delays in obtaining funds from Farallon Capital Management to fulfill its upcoming financial obligations. The company intends to borrow the funds through its Zinc International unit.

VRL is facing a repayment of $500 million for a 7.125% bond that is set to mature on May 31.

The company’s net debt has increased by 115% year-on-year, reaching around Rs 44,500 crore, primarily due to dividend payouts and higher capital expenditure. Vedanta’s cash and cash equivalents currently amount to approximately Rs 21,800 crore.

Prior to the dividend announcement, the stock concluded Monday’s trading session on the NSE at Rs 287.50 per share, representing a nearly 2% increase.