Shares of mining giant Vedanta Ltd settled 0.38 percent higher in Tuesday's trade after the Mumbai-headquartered company announced its first interim dividend late Monday evening. Billionaire Anil Agarwal-led company declared its first interim dividend for financial year (FY) 2023-24 worth Rs 18.5 per share. The record date has been set as May 30, 2023.

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The payout by the mining major towards this will be Rs 6,877 crore, Vedanta said in a regulatory filing to the exchanges. "We wish to inform you that the board of directors of the company through resolution passed by circulation on Monday, May 22, 2023 have approved first interim dividend of Rs 18.50 per equity share i.e. 1850 percent on face value of Re 1 per share for the financial year 2023-24 amounting to Rs 6,877 crore," the company said.

WATCH: Vedanta announces 1st interim dividend of Rs 18.5 per share for FY24

"The record date for the purpose of payment of dividend is Tuesday, May 30, 2023. The interim dividend will be paid within stipulated timelines as prescribed under law," the statement read.

Vedanta dividend history

In the last six financial years, the total dividend payout to investors by Vedanta was Rs 217.65 per share.

In FY23, the mining giant gave dividends on five occasions. The total dividend paid was Rs 101.50.

In FY22, Vedanta paid Rs 45 per share as a dividend amount in three tranches. Meanwhile, in FY21 and FY20, the company gave out dividends of Rs 9.5 per share and Rs 3.90 per share, respectively.

In FY19 and FY18, Vedanta gave dividends on two occasions, each, which amounted to Rs 18.85 and Rs 38.90, respectively.

Dividend yield

In the last one year, dividend declared by Vedanta Ltd stood at Rs 101.50 ( Rs 31.50 + Rs 19.50 + Rs 17.50 + Rs 12.50 + Rs 20.50) per share. So, Vedanta's dividend yield in last one year stood at around 35 percent

Shares of Vedanta will trade ex-dividend on the day or a day before the record date. When a firm goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.

Data available with Trendlyne suggests the stock has an average broker target of Rs 273.5 per share, implying 5 percent downside from the current market levels.

The stock trades at a price-to-book (PB) value of 2.2, which is below the industry median. Vedanta shares have been relatively less volatile than the overall markets and traded with a 1-year beta of 0.88, according to the data.

The stock has risen 5 percent in the last one month, while the shares have largely underperformed so far this year, with the stock down 9 percent on a year-to-date basis. The fall is in line with the overall muted returns witnessed in the metals sector.

For the fourth quarter ended March, Vedanta posted a 68 percent decline in profit amid declining prices of metals. The metals and mining major's consolidated net profit stood at Rs 1,881 crore for the March quarter as against Rs 5,799 crore in the year-ago quarter.

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Meanwhile, quarterly revenue too was down 5 percent to Rs 37,225 crore. The share of revenue from the mainstay aluminium business reduced to 33 percent from 39 percent.

First Published:May 23, 2023 6:49 PM IST