Latest news with #AnilAgarwal-owned
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Business Standard
12 hours ago
- Business
- Business Standard
Vedanta offloads 1.6% stake in Hindustan Zinc to raise ₹3,028 crore
Anil Agarwal-owned Vedanta Ltd on Wednesday offloaded 66.7 million shares in its subsidiary Hindustan Zinc, amounting to 1.6 per cent of the company's outstanding ordinary share capital, raising ₹3,028 crore, according to a stock exchange filing. The shares were sold to institutional investors through an accelerated book-building process. The board of directors of the Anil Agarwal-led Vedanta met on Wednesday and approved the first interim dividend of ₹7 per share for the financial year 2025–26 (FY26), totalling ₹2,737 crore, the company said. Hindustan Zinc's stock ended the day at ₹452.80 on the National Stock Exchange, down 6.90 per cent, giving it a total valuation of ₹1.91 trillion. Vedanta owned a 63.42 per cent stake in the company before the transaction, which will decline to 61.82 per cent following the stake sale. The company said the stake sale is part of Vedanta's broader strategy to demerge into sector-specific entities, and the proceeds will be used to strengthen its balance sheet. 'As we actively progress towards the demerger of Vedanta into sector-focused entities across diverse verticals, this capital raise will help de-leverage the balance sheet and enhance financial flexibility, enabling each of the demerged entities to pursue their independent growth plans,' the company said in a statement. The company further added, 'This transaction reflects continued investor confidence in Vedanta's strategic direction, particularly the progress made over recent quarters in delivering record production, driving cost efficiencies, and execution of its deleveraging and demerger initiatives aimed at long-term value creation for all stakeholders.' It added that the date for the purpose of dividend payment is expected to be Tuesday, June 24, 2025. Vedanta's shares were down by 0.64 per cent to ₹456 after the market closed on the NSE.
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Business Standard
30-04-2025
- Business
- Business Standard
Vedanta Q4 results: Consolidated net profit rises by 154% to ₹3,483 cr
Anil Agarwal-owned Vedanta Ltd reported a rise in its consolidated net profit (attributed to the owners of the company) by 154.4 per cent to Rs 3,483 crore in the fourth quarter of the financial year 2024-25 (Q4FY25) compared with the same quarter last year, driven by higher volume and a lower cost base. The mining major's net sales jumped by 13.9 per cent to Rs 40,455 crore in the January–March quarter on a year-on-year basis (YoY). The company's other income rose by 30.3 per cent to Rs 761 crore for the quarter ended March 31, compared with the same quarter last year. 'Our numbers are quite resonant in the current environment, which is highly volatile,' Arun Misra, executive director, Vedanta, told Business Standard. 'Our growth impact is driven by very basic fundamentals — volumes are augmented, our cost base is compressed, and we focus heavily in terms of cash flow generation.' He added in a statement that the company's outlook for FY26 is focused on growth and efficiency, and that the company delivered its 'highest-ever annual volumes' for aluminium and zinc in FY25. 'We are accelerating our transformation, driven by strategic projects like the Lanjigarh expansion and Sijimali Bauxite Mine, which are on track to significantly improve our cost position next fiscal year. With multiple volume expansion projects set for completion in FY26, we remain confident in our ability to deliver another strong year,' Misra said. According to the company's investor presentation, the company's net debt is at Rs 53,521 crore, with its net debt to Ebitda (earnings before interest, taxes, depreciation, and amortisation) ratio at 1.2 times. Ajay Goel, chief executive officer, Vedanta, said that the company has cut down debt by $1.2 billion (about Rs 10,000 crore) in FY25 on a consolidated basis and, going ahead in FY26, it aims to bring the net debt-to-Ebitda ratio down to 1 time. 'This means our Ebitda in the current year will be bigger than our debt, and the 1 time, to put it in perspective, will be a benchmark both in India and globally in metals and mining,' Goel added. Vedanta's profit before interest, depreciation and tax (PBIDT) increased by 30.7 per cent to Rs 12,228 crore in the January–March quarter on a YoY basis. 'Globally, zinc's growth has been 1 to 2 per cent, whereas in India, it has increased to 4 to 5 per cent, depending upon the spending on the infrastructure sector and the growth in the automobile sector. One of the areas where we see new demand coming is cars that are exported out of India and have a galvanised body (as cars sold in India did not have galvanised bodies earlier). Now, after Maruti (Suzuki India) declared its galvanisation programme, more cars will be selling galvanised car bodies in India,' said Misra.
