New Delhi, 17/12/2024: Vedanta Limited has declared its fourth interim dividend for the current fiscal year, amounting to ₹8.50 per share. This brings the company’s total dividend payout for the year to ₹43.50 per share, reflecting Vedanta’s ongoing commitment to delivering value to its shareholders. The total financial outlay for this dividend will be approximately ₹3,324 crore. The record date for determining eligible shareholders has been set for Tuesday, December 24.
The company began its dividend distribution for the fiscal year with an interim dividend of ₹11 per share in May, followed by a ₹4 per share payout in July, and a substantial ₹20 per share in September. Notably, the board meeting initially scheduled in October to consider declaring an additional dividend was postponed and eventually canceled. This decision highlights Vedanta’s careful and strategic approach toward dividend declarations, ensuring they are closely aligned with the company’s financial performance, market conditions, and broader corporate priorities.
Vedanta’s financial performance during the first half of the fiscal year has been notably robust. The company reported an all-time high earnings before interest, tax, depreciation, and amortization (EBITDA) of ₹20,639 crore for the April-September period, representing a remarkable 46% increase compared to the corresponding period in the previous year. This growth has been supported by proactive financial strategies, including raising ₹8,500 crore through a qualified institutional placement (QIP) and over ₹3,100 crore from the sale of its stake in Hindustan Zinc. These strategic capital-raising efforts have provided Vedanta with additional liquidity to support its operations and dividend commitments.
Despite its strong earnings, Vedanta’s net debt remained significant at ₹56,927 crore at the end of September, underscoring the company’s ongoing challenge in balancing robust growth with prudent debt management. Nonetheless, the company’s high dividend yield combined with strong operational performance has bolstered investor confidence. Vedanta’s stock has performed impressively in 2024, nearly doubling in value and reaching a record high of ₹526.95 earlier on Monday, demonstrating strong market faith in the company’s strategic and financial management.
In addition to its financial achievements, Vedanta has also received favorable ratings from leading credit agencies. India Ratings upgraded its rating on the company’s non-convertible debentures to ‘IND AA-/Rating Watch with Developing Implications’ from its previous rating of ‘IND A+/Rating Watch with Positive Implications.’ This upgrade signals improved financial flexibility and reduced refinancing risk on the company’s USD-denominated bonds, following recent international fund-raising initiatives. Additionally, India Ratings withdrew its rating on Vedanta’s commercial papers, reflecting the company’s strengthened credit profile. Earlier this year, other agencies, including ICRA and CRISIL, also upgraded Vedanta’s long-term ratings, further endorsing its solid financial foundation and strategic direction.
Overall, Vedanta’s consistent dividend distributions, record-breaking financial performance, strategic capital management, and positive credit rating upgrades collectively underscore the company’s commitment to creating shareholder value while effectively navigating financial and operational complexities. The company’s measured approach to dividends, alongside its strong performance indicators, positions Vedanta as a resilient and investor-friendly entity in the metals and mining sector.
