Vedanta Prepares $2 Billion for FY25 Dividend Payments, Says CFO

Vedanta Limited is a prominent global conglomerate specializing in natural resources, with a primary focus on aluminum, ferroalloys, nickel, semiconductors, glass, oil and gas, steel, copper, iron ore, and power. According to Mr. Goel, the company is aiming for $6 billion in EBITDA for the current fiscal year, which will generate $4 billion in free cash flow before capital expenditures. In the first quarter of FY25, the company already produced pre-capex free cash flow of Rs 4,371 crore, or $533.9 million. Vedanta’s capex guidance for FY25 is $1.9 billion, as the management subsequently disclosed. Goel confirmed that Vedanta could have $2 billion in free cash flow after subtracting the entire capex amount from the pre-capex free cash flow generation target. This free cash flow could be used for dividend payments if necessary. If the company decides to use the entire $2 billion for dividend payments, public shareholders could receive over Rs 7,200 crore of the company’s cash outflows as dividends.

Vedanta Q1 FY25 results:

Metals and mining major Vedanta Company reported a 36.6% increase in consolidated net profit. For Q1 FY25, Vedanta’s profit after tax (PAT), attributable to the owners of the company, stood at Rs 3,606 crore, up from Rs 2,640 crore on a year-on-year (Y-o-Y) basis. The company stated that the overall reported profit was Rs 5,095 crore, marking a 54% increase year over year. Vedanta also noted a 5.5% decrease in total expenses compared to the corresponding period the previous year. Net sales for the same period increased by 5.7% to Rs 35,239 crore. While public shareholders and the company’s employee trust held 43.45% and 17% of the total shareholding as of Q1 FY25, respectively, promoters and promoter groups owned 56.38% of Vedanta’s total shareholding.

Vedanta stock price:
Today, the current price of Vedanta stock is Rs. 432.35 per share, showing an almost 1% increase in intraday trading. Later in the day, we witnessed a significant upward movement in this stock.

Conclusion: Vedanta Limited has reported strong cash flow in their Q1 FY25 results, which can be directly used for dividend payments.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.