Vedanta board to consider first interim dividend of FY24 next week

Shares of Vedanta gained in Thursday’s trade after the company announced that its board will meet on Monday, May 22 to consider and approve the first interim dividend of FY24.

The shares of this multinational mining company were trading at Rs 283.15, up Rs 3.70 or 1.32%.

The record date for the purpose of determining the entitlement of the equity shareholders has been fixed on May 30, 2023, the company filing said. The announcement was made late on Wednesday.

The Mumbai-headquartered company had announced an interim dividend of Rs 20.50 on April 6, 2023, taking the FY23 dividend payout to Rs 101.50 per share.

The mining major had last week reported a 67.5% year-on-year drop in its March quarter net profit at Rs 1,881 crore. The company’s revenue from operations dropped 5.4% YoY to Rs 37,225 crore.

Vedanta’s EBITDA margin reduced to 29% in Q4 from 39% in the March quarter of FY22 while the consolidated quarterly EBITDA stood at Rs 9,362 crore, up 32% quarter-on-quarter.

During the quarter, the company’s EBITDA growth was driven by higher volume across businesses, easing of input commodity inflation and higher output commodity prices.FY23 EBITDA decreased by 22% to Rs 35,241 crore, on account of lower output commodity prices and higher input commodity prices, partly offset by higher sales, strategic hedging and foreign exchange gains.

The stock has been a laggard, giving negative returns of 12.9% over a 12-month period versus near 12% returns given by the Nifty50 during this time, according to Trendlyne data.

The stock has also been highly volatile and traded with a 1-year beta of 1.48, the Trendlyne data suggested, further.

The stock is currently trading at a discount of 20% from its 52-week high of Rs 340.75 which it hit in January this year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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