Banks are reportedly feeling uncomfortable by Vedanta Limited issuing high dividends to its parent company, as per sources.
Banks are said to be worried about their exposures to Vedanta Limited and its financial health in the midst of this high dividend spree.
VEDL’s net debt stood at Rs 592b and net debt/EBITDA stood at 1.88x in 1QFY24 as against 1.28x as on Mar’23. Vedanta paid out Rs 18.5 as the first interim dividend for FY24, Motilal Oswal Financial Services said in a note.
Vedanta’s consolidated net sales stood at Rs 337b (down 12 per cent YoY), in line with estimate of Rs 334b, Motilal Oswal Financial Services said in a note.
Revenue was adversely impacted by the reduction in commodity prices and lower volumes, which was partially offset by higher premiums and favorable exchange rate movement.
Vedanta’s consolidated EBITDA stood at Rs 64b (down 37 per cent YoY), 6 per cent miss to estimate of Rs 68b. The aluminum vertical was down 19 per cent YoY to Rs 18b; HZL was down 35 per cent QoQ to Rs 33b and the oil and gas vertical was down 45 per cent YoY to Rs 11b. All the verticals (except copper) were profitable during the quarter.
LME prices across the non-ferrous portfolio were down QoQ. Zinc/Lead/ Copper/Aluminum prices were down 19 per cent/1 per cent/5 per cent/6 per cent on a QoQ basis, whereas silver was up 7 per cent QoQ.