VEDANTA shares were in the spotlight today as the top management of the mining company is slated to consider and approve the fifth interim dividend payout for FY23 on Tuesday (March 28). At 3:30 PM today, the share price of Vedanta Ltd was spotted trading 1.01% higher at Rs. 275.50 per piece. In the last one year, the returns from the stock have fallen almost 33%, while its year-to-date (YTD) performance is down 12.84%.
If the dividend is approved today, the record date for determining the entitlement of the equity shareholders for the said dividend is expected to be April 7 (Friday).
In a regulatory filing last week, the company said: "The meeting of the board of directors of the company (the board) is proposed to be scheduled on March 28 to consider and approve the Fifth Interim Dividend on equity shares, if any, for the Financial Year 2022-23."
In the last 12 months, the company has declared an equity dividend of Rs 81 a piece, resulting in a whopping dividend yield of almost 30%.
The dividend consideration comes at a point when there are increasing concerns around the ability of Vedanta Resources, which is the parent company of Vedanta, to meet its debt upcoming debt maturities in the quarter ending June 23. It is to be noted that Anil Agarwal’s Vedanta Resources has a 70% stake in Vedanta Limited.
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For the December quarter, Vedanta posted a 42% year-on-year (YoY) fall in its consolidated net profit at Rs 3,092 crore. During this period, the company reported its operating revenue at Rs 33,691 crore. Vedanta’s cash and cash equivalents stood at Rs 23,474 crore as of the December quarter.
A Look At Vedanta's Dividend History in the current financial year:
In FY23, the mining giant issued its first interim dividend of Rs 31.50 a piece in May 2022. The company’s second interim cash dividend of Rs 19.50 per share was issued in July.
Vedanta’s third and fourth equity dividends were Rs 17.50 per share and Rs 12.50 per share, announced in November and February 2023.