Vedanta Approves Rs 8.5 Interim Dividend Worth Rs 3,324 Crore

Billionaire Anil Agarwal’s Firm Approves Rs 8.5 Interim Dividend, Payout Hits Rs 3,324 Crore

Vedanta Limited, the diversified mining company led by billionaire Anil Agarwal, has announced its fourth interim dividend for FY25. The dividend of Rs 8.5 per equity share amounts to a total payout of Rs 3,324 crore ($392 million), according to an exchange filing on December 16.

The Board of Directors approved the dividend at their meeting on December 16, 2024. This brings the total dividend payout by Vedanta for FY25 to Rs 16,799 crore.

The record date for the dividend payment is December 24, 2024, and the interim dividend will be paid within the stipulated timeline, the company stated.

Dividend Timeline of Vedanta for FY25

Vedanta Limited has made major strides in deleveraging and refinancing its parent entity, Vedanta Resources. According to the company’s September quarter earnings call, Vedanta Resources aims to achieve a “single-digit cost” in the near future. This will be accomplished by covering interest obligations through brand fees and financing the principal through routine dividends.

Chief Financial Officer Ajay Goel stated earlier on November 8 that this strategy will enable Vedanta Resources to become self-funded.

A major milestone in this deleveraging effort was achieved on December 6, when Vedanta Resources released encumbered shares held by group subsidiaries. This move has significantly reduced the group’s debt levels, bringing them to their lowest point in a decade.

Vedanta’s stock price has reflected this positive momentum, nearly doubling in value in 2024 and pushing the company’s market capitalization above Rs 1.9 lakh crore. Despite a 1.15% decline on December 16, the company’s long-term outlook remains promising.

Vedanta Limited reported a net profit of Rs 4,352 crore for the quarter ended in September, driven by higher metal revenue and a write-back. The company’s net debt decreased by Rs 4,400 crore to Rs 56,927 crore, with a net debt to EBITDA ratio of 1.49x.

The company generated free cash flows of Rs 8,525 crore, a 50% year-on-year increase, and expects to reach peak annual EBITDA levels for FY25. Recently, Vedanta raised Rs 8,500 crore through a Qualified Institutions Placement (QIP) at Rs 440 per share, the largest issuance in India’s metals sector.

Parent company Vedanta Resources (VRL) has reduced its debt by $4.7 billion over 2.5 years, reaching a decade-low of $4.8 billion. Moody’s Ratings upgraded Vedanta Resources’ bond in October, citing successful funding efforts. The upgrade revised Vedanta’s corporate family rating to B3 from Caa1 and upgraded the rating on senior unsecured bonds. 

Meanwhile, S&P Global Ratings also upgraded Vedanta Limited in July, noting the company’s sufficient internal funds to meet debt obligations by the end of 2025.