Vedanta Shareholders Anticipate Fourth Interim Dividend for FY25

Shares of Vedanta Ltd, the metals and mining major led by Anil Agarwal, have been in the spotlight following the company's announcement of a fourth interim dividend for the financial year 2024-25. This move has fueled a significant surge in the stock price, with Vedanta shares rising by 3.30% to a high of Rs 495.45 during recent trading.

The Board of Directors of Vedanta is scheduled to meet on Tuesday, October 8, 2024, to consider and approve the fourth interim dividend on equity shares. The company has already set Wednesday, October 16, 2024, as the 'Record Date' to determine the entitlement of equity shareholders for this dividend.

Dividend History and Yield

Vedanta has a robust history of paying dividends to its shareholders. In the current financial year, the company has already declared interim dividends of Rs 11, Rs 4, and Rs 20 per share on three different occasions, totaling Rs 35 per share for FY25. This consistent dividend payout has resulted in a dividend yield of 7.23% at the current market price.

Historically, Vedanta's dividend payouts have been substantial. In FY23, the company announced a dividend of Rs 101.50 per share, amounting to Rs 37,572 crore. In FY22, the dividend was Rs 45 per share, totaling Rs 16,689 crore. The dividend yield for FY24 stood at 10.86%, with a payout of Rs 29.50 per share.

Share Performance

Vedanta shares have exhibited remarkable performance over the past year. The stock has more than doubled investors' money, with a rally of 116.02% in the last 12 months. In the last six months, the shares have advanced by nearly 80%, and in the last one month, they have gained around 5%.

As of September 26, 2024, Vedanta's market capitalization stands at Rs 1,89,204.13 crore on the BSE, and the company is a constituent of the BSE 100 index. The shares have a 52-week range of Rs 506.85 - 207.85 on the BSE.

Financial Health and Operations

Vedanta, a subsidiary of Vedanta Resources, operates as a global powerhouse in minerals, power, and energy. The company's profit after tax (PAT) for the first quarter of FY25 jumped to Rs 3,606 crore, up from Rs 2,640 crore in the corresponding quarter of the previous fiscal year.

Vedanta Resources, the holding company, has been addressing its debt obligations through various financial maneuvers, including the sale of stakes in Vedanta and Hindustan Zinc, and a recent qualified institutional placement that raised $1 billion. These moves are expected to improve liquidity and financial flexibility, helping to retire high-cost borrowings and reduce interest outflow.