Vedanta board to consider third interim dividend for FY25 on September 2

Vedanta Ltd announced on Wednesday, August 28 that its board will meet next week to consider and approve the third interim dividend for the current financial year (2024-25). The board meeting is scheduled for September 2, and the record date for the dividend is fixed as September 10, 2024.

“…the meeting of the board of directors of the company is proposed to be scheduled on Monday to consider and approve the third interim dividend on equity shares, if any, for the financial year 2024-25,” said the Anil-Agarwal-led metals-to-mining conglomerate in a regulatory filing to the BSE.

‘’…the record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared, is being fixed as Tuesday, September 10, 2024,” added Vedanta in its statement today.

Also Read: Vedanta Chairman Anil Agarwal hails Hindustan Zinc as ‘crown jewel,’ lauds contributions to Nation

Vedanta dividend history

Vedanta Ltd. approved a second interim dividend of ₹4 per share for the current fiscal year in July. In May, Vedanta Ltd. also approved its first interim dividend of ₹11 per share. The record date for the first interim dividend was Saturday, May 25, 2024.

Vedanta Ltd issued dividends close to ₹101.4 a share in FY23 and ₹29.5 per share in FY24, leading to handsome dividend yields for investors and Vedanta’s parent (Vedanta Resources), which holds more than 56 per cent of the company’s shares.

The mining major raised around ₹30,000 crore through various instruments such as a qualified institutional placement (QIP), offer for sale (OFS) and dividend to pursue further deleveraging and growth.

Also Read: Vedanta’s Anil Agarwal pens heartfelt birthday wish for his daughter, ‘She didn’t take a single rupee from me’

Proceeds from Vedanta Ltd’s ₹8,500-crore QIP, Hindustan Zinc’s OFS of ₹3,200 crore, and ₹5,100 crore from the second interim dividend, coupled with existing cash reserves of ₹13,000 crore, will create a reserve of ₹30,000-crore after the conglomerate receives all the funds.

“Disciplined growth. Operational excellence. Exploring opportunities along the value chain. And an unwavering commitment to sustainability,” Navin Agarwal, vice-chairman of Vedanta, wrote in a post on X.

Also Read: Vedanta to offload 2.6% stake in Hindustan Zinc via offer for sale

Vedanta Q1 Results

During the April-June quarter, cost reduction helped the company clock a 54 per cent year-on-year growth in its consolidated net profit at ₹5,095 crore. The consolidated revenue grew six per cent during this period to ₹35,239 crore. The company’s net debt grew to ₹61,324 crore as of 30 June, compared to ₹56,338 crore at the end of March. However, the net debt to EBITDA ratio remained stable at 1.5 times annualised.

“Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20 per cent year-over-year reduction in overall Cost,” said Arun Misra, , Executive Director, Vedanta Ltd.