Rs 18.50/Share Dividend: Vedanta Declares 1,850% 1st Interim Dividend Payout For FY24

Vedanta Ltd while declaring its Q1FY24 results on Friday has approved the first interim dividend of 1850% for FY24. At the closing of the market session, the scrip was seen trading a dividend yield of 6.64% based on the declared interim dividend.

"During the quarter ended 30 June 2023, the Board of Directors of the Company, through resolution passed by circulation on 22 May 2023, approved the first interim dividend of Rs 18.50 per equity share, i.e., 1,850% on face value of Rs 1/- per equity share for FY 2023-24," said Vedanta in a stock exchange filing.

The firm reported that its net consolidated profit dropped by 40% (YoY), from Rs. 5,592 in Q1FY23 to Rs. 3,308 in Q1FY24. Additionally, the company's revenue from operations plummeted 13% from Rs 38,251 crore in Q1FY23 to Rs 33,242 crore in Q1FY24. Vedanta said in its earning statement that the drop is primarily on account of steep reduction in output commodity prices, partially offset by favourable movement in exchange rate.

EBITDA for Vedanta Limited dropped in the first quarter of FY24 to Rs 6,975 crore from Rs 10,741 crore in the same quarter last fiscal year. The difference was witnessed on account of lower output commodity prices and lower sales, partially offset by moderation of input commodity prices, according to Vedanta.

The company's gross debt went up from Rs 66,182 crore in Q4FY23 to Rs 73,484 crore as of June 2023 quarter. The corporation posted a net debt of Rs 59,192 crore. Depreciation and amortisation for the first quarter of FY24 are at Rs 2,550 crore, while cash and cash equivalents continue to be in a solid position at Rs 14,292 crore.

Mr Sunil Duggal, Chief Executive Officer, Vedanta, said "Vedanta is on a transformational journey with significant growth across its businesses and diversification into future enabling, technology focused sectors. We remain committed to maximizing shareholder returns through best-in-class and low-cost operations, skill development and global experience leadership with sustainability at the forefront. We have delivered Rs 6,975 cr in EBITDA this quarter, with an operating margin of 24% and PAT of Rs 3,308 cr, marking a 6% increase sequentially.

As we continue to move forward, we remain committed to achieving operational excellence and enhancing our competitiveness in the market. We are determined to lead the charge towards a more sustainable and responsible tomorrow."

Vedanta has announced an equity dividend of 10150.00% at a face value of Rs 1, or Rs 101.5 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 278.30 is 36.48%. The company has a solid track record of dividend declarations during the past five years. Vedanta Ltd. has issued 40 dividends since July 23, 2001, according to data from Trendlyne.
On Friday, the shares of Vedanta closed on the BSE at Rs 278.30 apiece down by 1.36% from the previous close of Rs 282.15. The stock made a 52-week-high of Rs 340.75 on (20/01/2023) and a 52-week-low of Rs 235.90 on (27/07/2022).