Vedanta shares gain as board to consider first interim dividend for FY24

On May 17, Vedanta had informed the stock exchanges that the meeting of the Board of Directors of the company is proposed to be scheduled on Monday, May 22, 2023, to consider and approve the first interim dividend on equity shares, if any, for the Financial Year 2023-24.

“The record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared, is being fixed as Tuesday, May 30, 2023,” the company added.

Vedanta posted a 68% drop in Q4FY23 net profit weighed down by a “one-time charge” in its oil and gas business. The company’s profit in the three months ended March declined to ₹1,881 crore from ₹5,799 crore a year earlier. 

The company’s bet debt stood around ₹44,500 crore, up 115% YoY due to dividend payout and higher capex. Its cash and cash equivalent stood at around ₹21,800 crore.

The total upcoming debt, which is due for repayment or refinancing in next two months, is $750 million and $2 billion for FY24. The management is committed to repay or refinance the entire amount at the holding company level and has already deleveraged $2 billion YTD and $3 billion to date. 

The holding company will adhere to its commitment of $4 billion total deleveraging target.

Meanwhile, analysts believe Vedanta dividend may to remain elevated over FY24/25 led by a sharp reduction in energy costs.

Vedanta dividend history

The Anil Agarwal-led Vedanta Ltd has declared five interim dividends in FY2022-23. For fifth interim dividend of ₹20.50 per share, Vedanta dividend record date 2023 was fixed on April 7, 2023. The company declared total dividend of ₹101.50 per share in FY23.

At 2:25 pm, the shares of Vedanta were trading 1.51% higher at ₹286.25 apiece on BSE.

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