Vedanta Ltd has declared an interim dividend of Rs 13 per equity share, resulting in a cash outflow of Rs 4,832 crore. This was the third interim dividend for FY 2021-22. According to a stock market release, the company’s Board of Directors declared an interim dividend on March 2, which corresponds to 1,300 percent on the face value of each equity share worth Rs 1. The record date for dividend payments, according to the corporation, is March 10.
In September 2021, Vedanta announced an interim dividend of Rs 18.50 per share, followed by a dividend of Rs 13.50 per share in December 2021. The dividend yield is nearly 11.62 percent of the stock’s closing price on March 2 when all three payments are taken together. The dividend outgo in September was Rs 6,876.82 crore, while it was Rs 5,018.22 crore in December.
Vedanta has a total combined debt of Rs 57,026 crore as of FY21. On March 2, the company’s shares closed at Rs 387.35 on the BSE, up 1.81 percent from the previous close.
According to experts, Vedanta would benefit from a substantial surge in base metal prices, which will be reinforced by a hike in energy costs as a consequence of escalating tensions between Russia and Ukraine. Despite the parent’s large debt payment commitments, they expect operational profitability to improve as volumes grow and longer metal prices rise, leading to higher dividends.
Last month, Vedanta ruled out reorganization proposals that had been under consideration and outlined a dividend policy that involves paying out a minimum of 30% of attributable earnings after tax in dividends. The business also expressed interest in Bharat Petroleum Corp, which is currently in the expression of interest stage, and pledged to attain net zero debt by 2050 or sooner.
At the consolidated level, the firm will maintain an appropriate leverage ratio, according to the corporation. “The consolidated leverage ratio of Vedanta Limited on December 21 was 0.7x, which is among the best in its peer group. During typical business cycles, the firm would keep the consolidated ratio below 1.5x “It was said by the corporation.
Vedanta’s aluminum sector will start up two new mines
Vedanta’s aluminum division, which has been unaffected by COVID-19, will concentrate on backward integration in the next fiscal year and would put two of its mines in Odisha into production to provide raw material security for its facilities, according to a senior corporate executive.
On the front of the metal, Vedanta’s group company Balco will boost its capacity from 0.56 million tonnes to 1 million tonnes. He further said that the firm is extending its line of value-added goods such as billets and alloys to cater to emerging industries such as electric mobility, renewable energy, and aerospace.
Vedanta Aluminum presently manufactures one of the most extensive lines of aluminum and value-added products. The firm is a major manufacturer and exporter of aluminum billets. Vedanta Aluminum Business, a branch of Vedanta Limited, is India’s biggest aluminum maker, producing half of the country’s aluminum in FY’21 at 1.97 million tonnes per year.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.