Mining, metals and natural resources company Vedanta reported that its net profit in the March quarter was down five per cent at ₹ 7,261 crore against ₹7,628 crore logged in same period last year, largely due to high operational expenses.
Income was up 39 per cent at ₹40,433 crore (₹29,065 crore) while the total expenses increased 33 per cent to ₹29,901 crore (₹22,549 core).
The company board recommended a dividend of ₹31.5 per equity share, leading to an outflow of ₹11,710 crore. This will help Vedanta group in deleveraging its balance sheet, in line with latest capital allocation policy, the company said. The record date for the purpose of payment of dividend is fixed as May 9.
The company recorded net exceptional loss of ₹336 crore against a loss of ₹773 crore registered last year. Net tax expenses were higher at ₹2,935 crore against a write back of ₹1,886 crore recorded in the same quarter last year.
Sunil Duggal, Chief Executive Officer, Vedanta, said the strong free cash flow (pre capex) of ₹27,154 crore has allowed the company to reinvest for growth, further strengthen the balance sheet and continue dividend pay-out.
The company has signed an agreement for 580 MW renewable power distribution which leads one step closer towards becoming a net zero carbon organisation, he said.