Vedanta Declares 3rd Interim Dividend of Rs 17.50 Per Share Swastika
Top Dividend Player Vedanta dividends since 2021

Top Dividend Payer Vedanta Dividends Since 2021

Vedanta to pay a third interim dividend at Rs 17.5 per equity share

One of the largest mining and metals companies in the world, Vedanta Limited, managed by billionaire Anil Agarwal, has interests in iron ore, steel, copper, zinc-lead-silver, aluminum, power, oil, and gas in India, South Africa, and Namibia.

The Mumbai-based business paid its shareholders the first interim dividend for FY23, which was 31.5 rupees per equity share, in May 2022. In July 2022, it paid eligible shareholders the second interim dividend, which was 19.5 rupees per share.

The company had declared a third interim dividend of Rs 17.50 per equity share, or 1750% of the face value of Re 1 per share, for the Financial Year 2022–23, totaling Rs 6,505 crore, by a resolution voted by circulation on Tuesday, November 22, 2022.

Vedanta Dividend Ex-Date 2022

The ex-dividend date for Vedanta stocks will be before the record date. A stock often trades ex-date prior to the record date. Vedanta ex-dividend will be on November 29.

Vedanta Dividend Record Date 2022

Vedanta has set the record date for determining whether shareholders are eligible to receive a dividend payment of Rs 17.50. The record date for the dividend’s payment, according to the firm, is November 30. This indicates that Vedanta would pay shareholders who have shares of the company in their Demat accounts

Dividend History

The business raised its total pay-out in two rounds of dividends announced so far in FY23 to Rs 18,960 crore in July when it announced a second interim dividend of Rs 19.5 per equity share.

The company announced its first interim dividend of Rs 31 per share in April, which resulted in an outflow of Rs 11,710 crore.

The Vedanta Resources dividend announcements coincide with the company’s efforts to deleverage its balance sheet, since Vedanta Resources controls 69.7% of Vedanta.

Vedanta was the top dividend-paying company in FY22, and it was followed in the top 20 list by businesses like Tata Consultancy Services, Oil and Natural Gas Corporation, HCL Technologies, Indian Oil Corporation, Hindustan Unilever, Hindustan Zinc, Indian Tobacco Company, State Bank of India, and Reliance Industries.

VEDANTA’s peers

The stocks in this group to be on the lookout for are NMDC, HINDUSTAN ZINC, and COAL INDIA.

 

Year Ended Dividend Pay-out
Per Share (Rs)
Dividend Payout
Ratio (%)
Dividend Yield
EOY (%)
COAL INDIA March 2022 17.0 60.3% 9.3%
HINDUSTAN ZINC March 2022 18.0 79.0% 5.8%
NMDC March 2022 14.7 46.0% 9.1%

 

Why Vedanta is giving dividends

The company’s extremely explicit capital allocation policy is one of the factors contributing to the aggressive and large dividend payments. It has specified exactly how much of the company’s income would go toward inorganic growth, dividend policy, and capital expenditures. This policy states that shareholders shall receive a minimum of 30% of the company’s attributable sustainable profit after tax (excluding HZL profits).

The Company has established a great track record of generating cash flows due to consistent increase in sales volume and balanced capital expenditure for ongoing operations.

Vedanta Financials

Prior to extraordinary and one-time tax credits, Vedanta’s profit for the fiscal year 2021–2022 increased by 95% to 24,299 crores, while its sales increased by 51% to 1.3 lakh crore. The company’s total debt was Rs 53,109 crore, while its EBITDA increased by 66% to Rs 45,319 crore. On July 28, 2022, the corporation will release its Q1 FY23 financial results.

According to the corporation, the company will maintain an adequate leverage ratio at the consolidated level. “Vedanta Limited’s consolidated leverage ratio on December 21 was 0.7x, ranking among the best in its peer group. The company would maintain the consolidated ratio below 1.5x throughout typical business cycles, according to the organization.

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