Tag: Vedanta

Vedanta Dividend: Board meet on May 16 to consider first payout for FY25, fund raising plans

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Anil Agarwal-led mining conglomerate Vedanta Ltd. on Monday (May 13) said it will convene a board meeting on May 16 to consider the first interim dividend for financial year 2025.

Additionally, the board will also deliberate on various fundraising strategies, including the issuance of equity shares or other convertible securities, according to a stock exchange filing.

The fund raising proposals will not be limited to public offers, rights issues, ADRs, GDRs, QIPs, preferential issue or any other method permissible.

Record date for the first interim dividend, if any, has been fixed as May 25, 2024.

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However, any decision in this regard will be subject to regulatory and statutory approvals, including the consent of the shareholders obtained through a general meeting.

The mining conglomerate had paid total dividends worth ₹37,573 crore in financial year 2023. The previous two instances has seen the company pay dividends worth ₹11 per share and ₹18.5 per share.

Recently, Vedanta’s subsidiary Hindustan Zinc had announced its first interim dividend of ₹10 per share for financial year 2025. Vedanta, with its 64.92% stake in the company received a total payout of ₹2,743 crore.

In an analyst meet held in February this year, Vedanta had guided for reducing debt by $3 billion by financial year 2027. The management had said that this will be done without adding any further incremental debt to the books of the Indian listed entity.

The street has raised concerns over Vedanta’s possibilities to fund its debt repayments due this year and the next. Earlier this year, Vedanta Resources, the parent entity, had received consent from bondholders to restructure four series of bonds, two of which were due in 2024 itself.

Shares of Vedanta Ltd ended at ₹413.95, up by ₹3.20, or 0.78% on the BSE.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta acquires Japanese display major AvanStrate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mining major Vedanta announced on Friday, May 10, that it is fully acquiring Japanese display screen major AvanStrate.

“The Board of Directors of Vedanta… have approved the acquisition of additional stake of 46.57% in AvanStrate Inc. (“ASI”) (an indirect subsidiary of the Company with 51.63% holding) from HOYA Corporation, Japan (“HOYA”) through Cairn India Holdings Limited (“CIHL”), a wholly-owned subsidiary of the Company,” the company informed in an exchange filing.

After the acquisition, Vedanta arm Cairn India Holdings will have 98.2% stake in AvanStrate. The company first bought a controlling stake in the Japanese firm in 2017 for $158 million.

“The acquisition of AvanStrate by Vedanta marks a significant milestone and strengthens our position as a leading player in the global display value chain,” said Akarsh Hebbar, Global Managing Director of AvanStrate.

As a wholly-owned subsidiary, AvanStrate will serve as a strategic asset for Vedanta as the conglomerate looks at playing a critical role in India’s journey towards becoming self-reliant in electronics manufacturing, Hebbar added.

AvanStrate has more than 700 patents to its credit, along with state-of-the-art manufacturing facilities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hindustan Zinc announces 500% dividend; May 15 fixed as record date

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The board of Hindustan Zinc Ltd. has approved an interim dividend of ₹10 per equity shares of face value of ₹2 each. This will result in a total outgo of ₹4,225.32 crore.

Vedanta Ltd., the company’s promoter that owns a 64.92% stake in Hindustan Zinc, will receive a total payout of ₹2,743 crore.

Hindustan Zinc’s ₹10 dividend announcement is a return to double digits for the company, that had declared dividends of ₹7 and ₹6 per share, respectively in July and December last year.

The Government, which also holds a 29.5% stake in Hindustan Zinc, will also receive a payout of ₹1,247 crore.

Record date for the interim dividend has been fixed as May 15, 2024.

Both Hindustan Zinc and Vedanta were among the top dividend paying companies in 2023.

For the March quarter, Hindustan Zinc had reported revenue of ₹7,549 crore, while margins were higher than estimates at 48.3%. Compared to a net debt of ₹370 crore during the December quarter, Hindustan Zinc turned net cash worth ₹1,700 crore at the end of the March quarter.

The management highlighted that both mined metal and refined metal production in financial year 2025 is likely to be higher than financial year 2024. Project capex for the year is likely to be in the range of $270 million to $325 million.

Shares of Hindustan Zinc are down 3.7% at ₹447. The stock has risen 43% in the last 12 months. Shares are up 40% in 2024 itself.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hindalco, Vedanta shares rise as CLSA says demand recovery will support metal prices

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global brokerage firm CLSA believes that outlook for aluminium is resilient, and that demand recovery will support metal prices. The Indian smelters they believe are well placed. The brokerage is positive on metals space and has issued ‘Buy’ calls on Hindalco Industries and Vedanta.

For Hindalco Industries, CLSA has recommended a ‘Buy’ call and raised its target price to ₹770 from ₹635 per share earlier, suggesting an upside potential of 20% from the stock’s current market levels.

The foreign brokerage has raised Hindalco’s FY24 and FY26 EBITDA estimates by 4% and 13%, respectively, on the back of higher aluminium price assumptions. CLSA also has raised profitability estimate for Novelis slightly.

So both on the domestic business and the Novelis business, the brokerage is fairly positive.

For Anil Agarwal-led mining giant Vedanta, the brokerage said the company is well placed to benefit from commodity upcycle given its diversified exposure.

Vedanta’s efforts to raise capacity and profitability augur well, the brokerage said in a note.

CLSA has a ‘Buy’ rating on the Vedanta stock, with a target price of Rs 430 per share. The stock price target indicates a further upside of 5% from the current market prices.

In an interaction with CNBC-TV18, Mitessh Thakkar of earningwaves.com said, “I like both of them, but in the short term, there could be some pullback happening in Hindalco though Vedanta still looks strong to me. Hindalco, I would be a buyer on this decline in case I can get fresh entry closer to about ₹620-610 zone. That is the buying area. If you get it over, extremely positive to go in here for medium to long term.”

Vedanta shares advanced 1% to trade at ₹415, while the Hindalco Industries stock was at ₹648.70, up 1.13% during Friday’s morning trade.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta shares may rally another 40%; Brokerages bullish post Q4 results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Anil Agarwal-led Vedanta Ltd’s performance in the fourth (January-March) quarter of financial year 2024 came largely as anticipated across segments, said a few brokerages, who raised share price targets for the stock post March quarter results.

Impressed by Vedanta’s fourth quarter results, a couple of analysts have even upped their Ebitda (operational profit) estimates. The mining major’s consolidated Ebitda in the fourth quarter came 4% above Street estimates, mainly led by higher margins in the oil and gas division.

“We are jacking up Vedanta’s FY25E/26E Ebitda by 18%/23% factoring in higher commodity prices and lower CoP (conformity of production) in aluminium. We believe the company’s debt peaked out in FY24,” said Nuvama Institutional Equities while raising its target price on the stock to ₹542 from earlier ₹394.

Kotak analysts have also increased their FY25 and FY26 EBITDA estimates by 14% and 17%, respectively. “We have increased consolidated Ebitda by 14%/17% for FY2025/26E mainly led by higher aluminum (6%/8%) and zinc (8%/5%) price forecast for FY2025/26E.”

Kotak maintains a ‘Sell’ rating on Vedanta due to rich valuations but has increased its target price to ₹320 per share from ₹255 apiece earlier on higher earnings.

For brokerage firm Motilal Oswal, Vedanta’s March quarter performance came largely in-line with expectations. Extending the maturity of bonds at the holding company by three years offers the company adequate liquidity comfort in the near term, Motilal said adding that the capex plans are progressing well, leading to further cost savings.

Motilal has marginally increased its Ebitda estimates by 4% in FY26 to incorporate the improving outlook. The brokerage has a ‘Neutral’ rating on Vedanta with a revised target price of ₹360 per share.

Rising commodity price to bolster growth

The outlook for financial year 2025 looks good on solid commodity prices and focus on cost reduction.

Analysts at Nuvama believe that Vedanta is best placed to ride rising commodity prices. Rising commodity prices not only improves cash flows, but open up the potential of increasing the valuation multiple too as debt overhang shall subside significantly.

Despite marginal delays, the brokerage said that Vedanta will complete its alumina, aluminium, and international zinc expansion during FY25, which will provide visibility around volume growth and cost reduction FY26 onwards.

As per Kotak, Vedanta’s expansion projects in the aluminum division—smelter, refinery and captive coal mines should complete in stages over the next 12-18 months, a key growth driver over FY25-26 estimates.

Shares of Vedanta Ltd. were trading 2.83% higher at ₹391.85 apiece today. In the last one month, the Vedanta stock has gained nearly 46%. In six months, the stock is up 85%.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta Q4 Result: Profit slides 27% due to falling metal prices, subdued oil & gas segment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mining major Vedanta Ltd posted a 27% drop in net profit for the fourth quarter of the fiscal year 2023-24 amid declining prices of metals like zinc, copper, and aluminium, and a subdued performance in the oil and gas segment.

The Anil Agarwal-led company’s net profit for the January-March quarter stood at ₹2,273 crore against ₹3,132 crore in the same quarter of the previous fiscal year. This is also a drop from the ₹2,868-crore profit reported in the third quarter.

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Revenue from operations fell 6.4% to ₹35,509 crore during the quarter under review, down from ₹37,930 crore in the year-ago period.

The global economic slowdown, exacerbated by geopolitical tensions and supply chain disruptions, has contributed to the fall in metal prices which has affected Vedanta’s profitability. Metals such as zinc, copper, and aluminium are significant revenue drivers for the company. Challenges in the oil and gas segment have also added to the company’s financial woes.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) slipped 7.3% to ₹8,768 crore against ₹9,459 crore reported in the corresponding period in the previous year. The EBITDA margin stood at 24.7%  against 24.9% in the preceding fiscal.

Shares of Vedanta ended 1.16% lower at ₹379 apiece on Thursday, April 25.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How Vedanta chairman Anil Agarwal, 70, does an hour’s swim, light weight training and meditation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As youngsters grow more and more fitness-conscious, Anil Agarwal, the Vedanta Chairman, said that apart from external appearance, it is “equally important to exercise your mind and better yourself from within”.

Agarwal, 70, shared on X his daily routine, which includes an hour-long swimming, besides dedicating half an hour each to lightweight training and meditation. He said these two hours are the ‘most important’ part of his day, allowing him to function “10x better”.

“Youth are much more conscious about fitness and good health today. Lekin, I always tell my children and all youngsters – as much importance you give to your external appearance, it is equally important to exercise your mind and better yourself from within, such as your attitude and behaviour towards life,” Agarwal wrote.

He said that he has followed a routine that helped his mind and body equally.

“Over time, I have formed my routine which has helped my mind and body equally. I have a long way to go, but every day there’s a small improvement. My daily routine involves an hour’s swim, 30 minutes light weight training and 30 minutes of meditation. These two hours are the most important of my day. I feel I can function 10x better with this,” he added.

Youth are much more conscious about fitness and good health today.

Lekin I always tell my children and all youngsters – as much importance you give to your external appearance, it is equally important to exercise your mind and better yourself from within, such as your attitude… pic.twitter.com/HUECqU0ZZn

— Anil Agarwal (@AnilAgarwal_Ved) April 23, 2024

Agarwal later went on to introduce his followers to his wife Kiran Agarwal’s “secret green juice recipe”.

While sharing a photograph of himself with a glass of it, he wrote, “Today, I will also introduce you all to my wife’s secret green juice recipe. She has made it a part of my diet for years and even though I didn’t enjoy it much before – now I’m sure this has helped me tremendously in life.”

Decoding the ingredients used in this secret recipe, he shared, “Asked her the recipe and sharing with all of you: Lauki, karela, spinach, aloe vera, amla, lemon juice, celery and ginger.”

The billionaire urged his followers and well-wishers to try the recipe for a week and share its results with him. He also asked them about their “daily dose of health”.

“Ek week try karke bataiye! Let me know how you feel. Also, what’s your daily dose of health?” he asked.

In the comments section, X users were quick to share some of their healthy recipes.

“Sir, I take a blend of meethi, kala jeera, ajwain (carom seeds) and haldi powder every morning with a glass of warm water. Pranam,” one user wrote.

Another one added, “Sir Thanks, This Green Juice is also part of my daily Lunch Menu.”

A few days ago, Agarwal shared a photograph of himself carrying a cricket bat in hand and said that he is “thoroughly enjoying” the ongoing Indian Premier League (IPL) season.

“Main meeting ke beech mein bhi thoda time chura ke score check karta rehta hoon. Mujhe hassi aati hain kyonki saamne baithe log bhi toh aankhein chura kar har 2 min mein score check karte rehte hain,” he wrote.

He further stated that IPL, which he feels is at the standard of the UK’s Premier leagues or US NBA, has transformed India and is a “shining example of Indian entrepreneurship.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta receives ₹27.97 crore GST penalty order, to file appeal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mining conglomerate Vedanta Ltd on Tuesday (April 16) said it has received a GST (Goods and Services Tax) penalty order of ₹27.97 crore for the period of FY 2018-19 to FY2020-21. The penalty stems from a dispute regarding Input Tax Credit reconciliations spanning the financial years 2018-19 to 2020-21.

“The company has received an Order from the Office of the Additional Commissioner, GST & Central Excise Commissionerate, Rourkela, confirming Penalty of Rs 27.97 crore along with Tax demand and applicable Interest,” according to a stock exchange filing.

Vedanta promptly announced its intention to appeal the order with the Appellate Authorities, seeking a favourable resolution to the dispute. In its statement addressing the matter, Vedanta reassured stakeholders that it does not anticipate any material financial impact resulting from the penalty.

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“The company intends to file an appeal against the said Order with the Appellate Authorities. The company is hopeful of a favourable outcome thereof and does not expect the said Order to have any material financial impact on the company,” it added.

Shares of Vedanta Ltd ended at ₹378.00, up by ₹7.45, or 2.01% on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Why this metals analyst prefers Vedanta over other aluminium players

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Amid rising aluminium prices, Rahul Jain, an independent metals analyst, bets on Vedanta over other aluminium players due to its strong operating leverage.

Aluminium prices rallied over the past few days after the US and the UK imposed new restrictions on trading Russian aluminum, copper and nickel, in the latest bid to curb President Vladimir Putin’s ability to fund his war machine.

Jain highlighted Vedanta as his top choice, given its significant operating and financial leverage.

Vedanta is enhancing its position by adding a coal mine and expanding alumina capacity.

“Last quarter, the EBITDA per tonne (for Vedanta) was lower than $600 and it has a potential to go above $1,000. So the EBITDA swing can be quite massive,” he noted.

Hindalco , he highlighted, is more of a converter as its earnings are also determined by the performance of the Novelis operations which deals more with converted products than raw metal. “So you can’t expect earnings to have a quantum jump, like what we can see with Vedanta.”

Another major player Nalco faces capacity constraints as they haven’t expanded smelting capacity in over a decade and are focusing more on increasing alumina capacity, he said.

Jain also made interesting observations regarding Indian metal companies.

India produces 4-4.5 million tonnes of aluminium and is 5-7% of global production. But in terms of the cost curve, the Indian aluminium producers are more profitable, largely because they are fully integrated, have their own alumina production, and own coal mining in some cases, he noted.

With the price increases, earnings growth of Indian metal players is expected start improving further from here on.

Jain recommends holding Hindustan Copper if you are an existing investor, but cautioned against making fresh investments in the company.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vedanta secures 11-year ₹3,900 crore loan from Power Finance Corporation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mining conglomerate Vedanta Ltd has secured an 11-year term loan of ₹3,918 crore from Power Finance Corporation Ltd (PFC), sources said. The financial closure will enable Vedanta to expedite the completion of its power projects.

The group plans to increase the operating capacity of its power business in India to 4.8 GW by FY27, sources with knowledge of the matter said. The latest financing follows Vedanta Group’s takeover of Meenakshi Energy Ltd on December 28 in an NCLT-driven insolvency process.

Meenakshi Energy has a coal-based power plant at Nellore, Andhra Pradesh, which Vedanta will use to supply power to merchants. Vedanta has acquired two plants — Meenakshi Energy Ltd in Andhra Pradesh with a capacity of 1 GW, and Athena Power in Chhattisgarh with a capacity of 1.2 GW.

It will primarily use the funds for these two of its key power plants, they said. The funding is part of the group’s renewed focus on growing its energy portfolio in India and the financial closure will enable the company to expedite the completion of the power projects.

PFC is India’s largest power-sector lender and typically extends financing to corporations that own promising power projects and manufacture power-sector equipment. In August 2022, the London-headquartered mining giant acquired Athena Chhattisgarh Power Ltd for ₹565 crore to meet its captive power requirements. Athena Chhattisgarh has a 1.2 GW coal-based power plant in the Janjgir Champa district.

Vedanta’s power strategy is in focus amid the group’s ongoing demerger. Marquee investors, including BlackRock, the world’s largest asset manager, as well as the Abu Dhabi Investment Authority (ADIA) and domestic mutual funds like ICICI Mutual Fund, Nippon India Mutual Fund and Mirae Mutual Fund, have all increased their holdings in the company which is proof to its strong and stable financial position.

Vedanta has sharply increased its focus on the energy generation business over the past two years. Last month, Serentica Renewables, a renewable power company promoted by Sterlite Power, said it would invest ₹25,000 crore to expand its projects portfolio to about 4 GW by June 2025. Sterlite will first commission 600 MW of renewable energy projects and add 500 MW of capacity in each subsequent quarter.

In September, Serentica received ₹2,600 crore from PFC for its hybrid renewable energy projects in Karnataka that are being built to meet the captive energy needs of Vedanta group companies. Athena’s plant, built close to the Mahanadi River, is about 80 km from BALCO and about 180 km from Jharsuguda and is connected by national highways and railway stations.

The company recently announced the commissioning of a new 1.5 metric tonnes per annum expansion at its alumina refinery in Lanjigarh, Odisha. This additional capacity will take the overall nameplate capacity at the Lanjigarh refinery from 2 mtpa to 5 mtpa.

Vedanta Sesa Goa also commenced mining operations at the Bicholim mineral block, adding to its growth plans. In September, Vedanta announced the demerger of its metals, power, aluminium, and oil and gas businesses to unlock value. The exercise will create six independent verticals — Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Ltd.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow