Vedanta declares interim dividend; shares surge. Details here

Vedanta declares interim dividend; shares surge. Details here

The mining major and Anil Agarwal-led Vedanta Limited announced on Wednesday that its board has approved an interim dividend of Rs 18.50 per share for FY22 that will amount to Rs 6,877 crore. This is the company’s first dividend for the current fiscal with the record date set for the purpose of payment of this dividend on September 9, 2021.”Vedanta has informed the Exchange that the Board of Directors at its meeting held on September 01, 2021, declared an Interim Dividend of Rs 18.5 per equity share,” the National Stock Exchange of India noted.

The Vedanta Limited dividend declaration announcement comes after Hindustan Zinc’s announcement on August 17, regarding deferment of decision on likely interim dividend for fiscal FY22. Vedanta Limited , a subsidiary of Vedanta Resources Limited is one of the world’s leading oil and gas and metals companies with significant operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa, Namibia, and Australia. The company’s management has reiterated again and again that its main focus now is to lower its carbon footprint and maximize value for stockholders. Also, Vedanta Limted, a subsidiary of Vedanta Resources Ltd, holds 64.92 per cent stake in Hindustan Zinc.

This is to be noted that Vedanta has announced only one dividend in the last few years. The company declared an interim dividend of Rs 9.50 in FY21 and announced the dividend of Rs 3.90 per share in 2019-2020. The company, even grappling with uncertain market conditions, managed to post the highest ever quarterly EBITDA of Rs 10,032 crore, which is 150 percent more than the same period last year.

In Q1 of FY22, Vedanta Limited standalone net profit stood at Rs 3,336 crore, while the consolidated net profit in the period under review stood at Rs 5,282 crore. Total income in the April-June period of the ongoing financial year surged to Rs 29,151 crore from Rs 16,998 crore in the same quarter a year ago. Also, the company witnessed a four-fold jump in its consolidated profit after tax to Rs 4280 crore during the first quarter of FY22. However, the net debt of the company was at Rs 20,261 crore. Vedanta holding stake in the zinc producing company received a sum of Rs 4,500 crore, which it was supposed to pass on to the Vedanta shareholders in entirety as per the Dividend Distribution Policy (DDP) of the company.

Last week, Moody’s Investors Service upgraded Vedanta’s senior unsecured notes to ‘B3’ from ‘Caa1’. It has affirmed holding company Vedanta Resources Ltd’s (VRL) B2 corporate family rating. Moody’s has also changed the outlook on all ratings to ‘stable’ from ‘negative’. At 1459 hours IST, the shares of Vedanta were trading at 306.00, up 8.05 points, or up 2.70 per cent.

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