Vedanta Share Price Rises After Board Approves Second Interim Dividend Payout

The Anil-Agarwal led Vedanta Ltd shares rose 1.14 per cent on Friday after the mining major announced its second interim dividend on Thursday post market hours.

The Mumbai-headquartered company has reversed losses on Thursday after news circulated of the firm's board mulling over a second interim dividend. The company will distribute nearly Rs 6,256 crore to shareholders.

Vedanta Ltd's board has fixed August 27 as the record date for the purpose of dividend payment, the company said in an exchange filing.

Additionally, the company said it will pay the interim dividend within the stipulated timeline.

The company, in June, had announced its first interim dividend of Rs 7 per share. In the previous financial year, Vedanta gave Rs 17,000 crore in dividends to its shareholders, amounting to Rs 43.5 per share.

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The scrip rose as much as 1.14 per cent to Rs 452 apiece.

Total traded volume so far in the day stood at 6.5 times its 30-day average. The relative strength index was at 54.

Out of 15 analysts tracking the company, 10 maintain a 'buy' rating, four recommend a 'hold,' and one suggest 'sell,' as per to Bloomberg data.

The average 12-month consensus price target implies an upside of 12.9 per cent

Vedanta Q1 Results

On a consolidated basis, Vedanta's net profit fell 12 per cent from last year to Rs 3,185 crore as against Rs 3,606 crore last year.

Revenue for the quarter rose by 5.8 per cent on a year-on-year basis to Rs 37,824 crore. The topline for the same quarter last year was Rs 35,764 crore.

The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter remained unchanged at ₹9,918 crore.

EBITDA margin for the quarter narrowed by 160 basis points from last year to 26.2 per cent from 27.8 per cent last year.