News

Published: October 9, 2024
Updated: October 9, 2024

Vedanta Postpones Board Meeting for Fourth Interim Dividend

In a recent announcement, Vedanta Ltd. has canceled its scheduled board meeting intended to discuss its fourth interim dividend for the current financial year. Originally set for October 9, 2024, the meeting was postponed due to unforeseen circumstances, leading the company to withdraw the notice entirely.

Previous Dividends and Financial Overview

So far this fiscal year, Vedanta has declared three interim dividends, the most recent being ₹20 per share, approved on September 2, 2024. This payout totaled ₹7,821 crore. Earlier in the year, the company also announced a second interim dividend of ₹4 per equity share in July, which amounted to ₹1,564 crore, following the first interim dividend of ₹11 per share.

Production Performance

Vedanta's steel production experienced a decline of 7% year-on-year, falling to 652,000 tonnes in the first half of FY25 compared to 702,000 tonnes during the same period in the previous financial year. The decrease in production was attributed to maintenance work at an oxygen plant and the debottlenecking of the steel melting shop, which impacted output.

Conversely, the company achieved record aluminum production during the July to September period, with a 21% increase to 1,205,000 tonnes in the first half of the year. Additionally, Vedanta reported its highest-ever production of mined and refined zinc in India, with a 5% year-on-year increase in refined metal production, reaching 524 KT in the second half of the year.

Stock Performance and Analyst Ratings

Vedanta's shares saw a decline of 1.67% during the trading session, dropping to ₹489.15 on the National Stock Exchange (NSE), before closing at ₹496.25 per share, a 0.24% decrease. This decline occurred amidst a minor dip of 0.12% in the benchmark Nifty 50 index. Over the past year, Vedanta's stock has surged by 126.65% and increased by 92.98% year-to-date.

Out of the 14 analysts covering Vedanta, eight have issued "buy" ratings, while five recommend holding the stock, and one suggests selling. The average consensus price target indicates a potential downside of 0.8% for the stock.

Vedanta's decision to cancel its board meeting for the fourth interim dividend has left investors eager for clarity on the company’s future dividend policy. Despite challenges in steel production, Vedanta continues to excel in aluminum and zinc output, contributing to its strong stock performance over the past year.