Shares of a leading metal and mining firm rose by 2 percent on Thursday, reaching Rs.526.60 on the BSE, after the company announced that it would hold a board meeting on December 16 to consider the payout of a fourth interim dividend.
Price Variation
During Thursday’s trading session, the Vedanta Ltd share price surged 2.4 percent to a 52-week high of Rs.526.60 per share, up from its previous close of Rs.514.35 apiece. The price has since retreated and is currently trading at Rs.520.25 per share. Vedanta Ltd has a dividend yield of 8.19 percent and a high dividend payout ratio of 259 percent.
What happened
The increase in Vedanta’s share price followed the announcement that the company’s Board will meet on Monday, December 16, 2024, to review and potentially approve the Fourth Interim Dividend for the Financial Year 2024-25 (FY25). Additionally, the company stated that the record date to determine the eligibility of shareholders for the dividend, if declared, will be Tuesday, December 24, 2024.
In terms of dividend history, Vedanta declared a Rs.11 dividend on May 24, followed by Rs.2 on August 2 and Rs.20 on September 10, 2024. With the current stock price, the company’s dividend yield stands at 8.19 percent.
Management Guidance
Vedanta Ltd is confident in achieving its production targets for FY ’25, which include reaching 11 million tons per annum from its iron ore business. The company is making steady progress towards these goals, with its subsidiary, Hindustan Zinc, reporting strong results in the second quarter, producing 256,000 tons of mined metal and 262,000 tons of refined metal.
Beyond its iron ore operations, Vedanta is focused on expanding its BALCO smelter and increasing aluminum production. The company aims to reach a capacity of 3.1 million tons per annum, with 90 percent of production derived from value-added products by FY ’26. These initiatives are part of Vedanta’s broader strategy to enhance its standing in the metals and mining industry.
Business Segments and Presence
Vedanta operates in diverse sectors, primarily focusing on metals such as aluminum, copper, zinc, lead, and iron ore. The company is also involved in oil and gas exploration and production, as well as commercial power generation.
In addition to its core operations, Vedanta manufactures pig iron and metallurgical coke and offers shipping and port services. The company has a strong presence in India and across various global regions, including the US, Asia-Pacific, Europe, the Middle East, and Africa.
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Financial Performance
In its recent financial update for the quarter ending September 2024, Vedanta Ltd reported revenue from operations of Rs.37,634 crore, reflecting a 3.3 percent decline from Rs.38,945 crore in Q2 FY24. Moreover, net profits increased significantly to Rs.5,603 crore from net loss of Rs.915 crore in the same period.
Shareholding Pattern
As per the September 2024 shareholding pattern, the promoters of Vedanta Ltd hold a 56.38 percent stake, while Foreign Institutional Investors hold a 11.45 percent stake. Domestic Institutional Investors and Retail investors hold a stake of 16.29 percent and 15.64 percent, respectively in the company.
Company Overview
Vedanta Ltd is an Indian multinational based in Mumbai, involved in mining and natural resources, including metals, oil and gas, and power generation. Originally established as Sterlite Industries in the 1980s, it changed its name after merging with Sesa Goa in 2015.
The company has a global presence and is pursuing growth through significant investments to enhance its operations across various sectors.
Written by – Siddesh S Raskar
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