Vedanta Limited, led by billionaire Anil Agarwal, has approved its fourth interim dividend for FY25 at Rs 8.5 per equity share, amounting to a total payout of Rs 3,324 crore. This decision was announced following the company’s board meeting on December 16.
With this latest dividend, Vedanta’s total payout for FY25 has reached Rs 16,799 crore. The record date for the dividend is set for December 24, 2024, and payments will be made within the stipulated timeline.
Focus on Deleveraging and Refinancing
The parent Vedanta Resources is working on debt cut and optimisation of finances. The company has targeted a single-digit cost of funding, said CFO Ajay Goel during the September quarter earnings conference call. Thereafter, interest obligations could be serviced through brand fees, while principal repayments depend on regular dividends.
Vedanta Resources freed encumbered shares held by group subsidiaries, including Twin Star and Vedanta Mauritius, on December 6. That cut the debt at the group level to its lowest in a decade.
Shares of Vedanta closed 1.15% lower on December 16 but have nearly doubled in 2024, pushing the company’s market valuation beyond Rs 1.9 lakh crore.
Vedanta had posted a net profit of Rs 4,352 crore in the September quarter, helped by robust revenue from metals and a write-back. Its net debt stood at Rs 56,927 crore as of September against Rs 61,327 crore as of June with a net debt-to-EBITDA ratio of 1.49x. Besides, Vedanta had raised Rs 8,500 crore in October through a QIP at Rs 440 per share that augmented its financial position.
Positive Rating Upgrade
In October, Moody’s Ratings upgraded Vedanta Resources’ bond ratings, citing successful fundraising efforts. The corporate family rating was raised to B3 from Caa1, signaling improved financial stability.
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