Introduction:
Vedanta Limited, one of India’s leading natural resources giants, has declared its fourth interim dividend for the fiscal year 2024-25, paying out ₹8.50 per share. This latest dividend payment will cost the company ₹3,324 crore, a substantial outflow that reflects its strong cash flows and commitment to rewarding shareholders. The record date for this dividend is set for Tuesday, December 24, 2024.
This announcement marks the latest in a series of generous payouts by Vedanta. Earlier this year, the company had distributed dividends of ₹11 in May, ₹4 in July, and ₹20 in September, bringing the total dividend declared so far in this fiscal year to ₹43.50 per share.
This is in line with Vedanta’s tradition of prioritizing shareholder returns, having paid out ₹29.50 per share in dividends for the entire 2023-24 fiscal year.
The company’s strong financial performance continues to support these substantial payouts. For the April-September 2024 period, Vedanta reported a record earnings before interest, tax, depreciation, and amortisation (EBITDA) of ₹20,639 crore, marking a 46% increase year-on-year.
This robust growth is attributed to strong performance across its core business segments, including metals, oil, and gas.
Vedanta Declares ₹8.50 Per Share as Fourth Interim Dividend for 2024: A Strong Performance Boosts Investor Confidence:
Vedanta’s capital-raising initiatives have also bolstered its financial position. In the first half of the current fiscal year, the company successfully raised ₹8,500 crore through a qualified institutional placement (QIP) and garnered over ₹3,100 crore through the sale of its stake in Hindustan Zinc. These moves have enhanced its liquidity,
enabling the company to continue its dividend distribution policy while managing its debt levels.
As of the end of September 2024, Vedanta’s net debt stood at ₹56,927 crore. While the company is managing its debt, it remains focused on growth and maintaining strong shareholder returns.
Investors have responded positively to Vedanta’s financial performance and dividend track record. The company’s shares reached a record high of ₹526.95 earlier on Monday, marking a remarkable 100% increase in 2024.
This strong market performance is a testament to Vedanta’s strategic direction and the confidence investors have in its business model and financial health.
Conclusion:
Vedanta’s continued commitment to paying out large dividends amidst strong earnings growth underscores its focus on shareholder value. As the company builds on its robust performance in 2024, it remains a key player in the Indian and global natural resources sector.
With record profits, significant capital inflows, and a clear dividend strategy, Vedanta is poised for further growth, even as it navigates its debt obligations. For investors, this makes Vedanta a highly attractive stock, particularly for those seeking consistent income from dividends.
Frequently Asked Questions FAQ:
- What is Vedanta’s fourth interim dividend for the fiscal year 2024-25?
- Vedanta has declared its fourth interim dividend of ₹8.50 per share for the fiscal year 2024-25. This payout will cost the company ₹3,324 crore.
- When is the record date for the dividend payment?
- The record date for the fourth interim dividend is Tuesday, December 24, 2024. Only shareholders registered by this date will be eligible to receive the dividend.
- How much dividend has Vedanta paid in total for the year 2024-25?
- So far in 2024-25, Vedanta has declared a total of ₹43.50 per share in dividends, which includes the ₹8.50 announced recently. The company previously paid ₹11 in May, ₹4 in July, and ₹20 in September.
- What was Vedanta’s financial performance in the April-September 2024 period?
- Vedanta reported record earnings before interest, tax, depreciation, and amortisation (EBITDA) of ₹20,639 crore for the April-September 2024 period, marking a 46% increase compared to the previous year.
- Has Vedanta undertaken any major capital-raising activities?
- Yes, Vedanta raised ₹8,500 crore through a qualified institutional placement (QIP) and over ₹3,100 crore through the sale of its stake in Hindustan Zinc in the first half of the fiscal year 2024-25.
- What is Vedanta’s current debt situation?
- As of September 2024, Vedanta’s net debt stands at ₹56,927 crore. Despite this, the company continues to maintain strong cash flows and has consistently paid high dividends.
- How did the market react to Vedanta’s recent dividend announcement?
- Vedanta’s stock reached an all-time high of ₹526.95 earlier this week, reflecting strong investor confidence. The company’s share price has roughly doubled in 2024.
- Why does Vedanta pay such high dividends?
- Vedanta is known for prioritizing shareholder returns through significant dividend payouts. The company’s strong earnings, capital-raising efforts, and stable financial position enable it to reward investors with attractive dividends.
- What was the dividend payout for Vedanta in the previous fiscal year?
- For the fiscal year 2023-24, Vedanta paid out a total of ₹29.50 per share in dividends.
- What makes Vedanta an attractive stock for investors?
- Vedanta’s strong earnings growth, consistent dividend payouts, robust market performance, and strategic financial moves make it an appealing stock for investors seeking both income and long-term growth.
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