Vedanta Share Price

Vedanta Limited

Vedanta Limited is one of the world’s leading diversified natural resources companies, with operations spanning across multiple countries and a portfolio that includes several critical commodities for global markets. A subsidiary of Vedanta Resources Limited, the company has firmly established itself as a key player in industries such as metals, mining, oil and gas, and power generation. With its headquarters in Mumbai, India, Vedanta operates in countries such as India, South Africa, Namibia, Liberia, and the UAE.

The company's strength lies in its diversified portfolio, with significant operations in aluminium, copper, zinc, lead, silver, iron ore, oil and gas, steel, ferrochrome, nickel, cement, and commercial energy. This vast range of resources positions Vedanta as a crucial actor in the global efforts towards decarbonisation and energy transition. The products it supplies are essential for numerous industries, including transportation, construction, renewable energy, automotive, aerospace, and more. The company’s strategic focus on sustainability and innovation has helped it adapt to the changing global economic landscape while maintaining its leadership in the natural resources sector.

History and Evolution of Vedanta Limited

Vedanta Limited's origins can be traced back to June 26, 1965, when the company was incorporated as Sesa Goa Pvt Ltd. Initially, the company was primarily involved in iron ore mining. Over the years, through strategic mergers, acquisitions, and expansions, Vedanta has grown into the global powerhouse it is today.

A significant milestone in Vedanta's history came in 1981 when the company went public, allowing it to raise capital and expand its operations. In 1992, another pivotal moment occurred when Vedanta commissioned the first phase of its pig iron plant, marking its foray into iron and steel production.

The year 2007 marked a major turning point for the company when it was acquired by Vedanta Resources plc, which took a 51% controlling stake. This acquisition allowed the company to expand its operations beyond India and diversify its product portfolio. In 2013, Vedanta merged with Sterlite Industries to form Sesa Sterlite Limited, further consolidating its position in the global market. Finally, in 2015, the company was renamed Vedanta Limited, a name that has since become synonymous with excellence in natural resources.

Operations and Business Segments

Vedanta’s operations are divided into several key business segments, each contributing significantly to the company's overall success.

• Metals and Mining Vedanta’s metals and mining operations are among the largest in the world. The company is a leader in producing aluminium, copper, zinc, lead, silver, iron ore, and steel. Its aluminium division, for instance, produces aluminium ingots, primary foundry alloys, wire rods, billets, and rolled products. These products cater to various sectors, including power, transportation, construction, and packaging.

The company’s copper division produces a wide range of copper products such as copper rods, copper cathodes, and copper bars, which are used by industries ranging from housing and electrical to transformers and cables. Vedanta’s iron ore and pig iron production cater to the steelmaking, construction, and infrastructure sectors, both domestically and internationally.

• Oil and Gas Vedanta is also a major player in the oil and gas sector. The company is involved in exploration and production activities and has made significant investments in expanding its oil and gas operations. Recently, the company made a capex investment of $270 million for its Rajasthan block, highlighting its commitment to growing this segment.

• Power Generation Vedanta operates multiple thermal power plants, which contribute to India’s energy grid. The company’s power generation capacity is vital for supporting its own operations, as well as providing energy to the broader market.

Financial Performance

Vedanta’s financial performance has been strong, with the company consistently delivering impressive results. For the fiscal year 2023-24, Vedanta reported a turnover of ₹1,41,793 crore, an EBITDA of ₹36,455 crore, and a net profit (PAT) of ₹7,956 crore before exceptional items. These financial figures reflect Vedanta’s robust operational capabilities and its ability to generate significant revenues across its various business segments.

In the first quarter of FY25, the company’s revenue stood at ₹35,239 crore, a 6% year-on-year increase. The quarter also saw a 47% rise in EBITDA to ₹10,275 crore and a 54% rise in profit after tax to ₹5,095 crore. These results demonstrate Vedanta’s strong financial health and its ability to navigate challenging market conditions while continuing to grow its revenues and profits.

One of the standout figures from Vedanta’s financials is its dividend yield. Vedanta has long been known for its commitment to returning value to shareholders, and its dividend yield of 5.44% is among the highest in the industry. The company recently announced its fourth interim dividend for FY25, with a total payout of ₹7,821 crore, further underscoring its focus on rewarding shareholders.

Strategic Investments and Expansions

Vedanta has made several strategic investments and expansions in recent years, aimed at boosting its operational efficiency and capacity. The company has been expanding its aluminium and zinc divisions, which have consistently outperformed industry benchmarks. These expansions are part of Vedanta’s broader strategy to reduce costs and increase production capacity, allowing the company to meet growing demand in global markets.

In addition to expanding its existing operations, Vedanta has also been investing in new projects. The company’s recent capex investment of $270 million for the Rajasthan block is a prime example of this. This investment is expected to help Vedanta increase its oil and gas production, further diversifying its revenue streams.

Sustainability and Corporate Social Responsibility

Sustainability is a core focus for Vedanta, and the company has made significant strides in this area. Vedanta is committed to reducing its environmental footprint and has implemented several initiatives aimed at achieving this goal. The company’s focus on decarbonization and energy transition aligns with global trends, and Vedanta is actively working to reduce its carbon emissions and transition to cleaner energy sources.

As part of its corporate social responsibility (CSR) efforts, Vedanta has implemented several programs aimed at improving the lives of people in the communities where it operates. These initiatives focus on areas such as education, healthcare, and infrastructure development, and have had a significant positive impact on local communities.

Outlook Overview

Vedanta Limited is a global leader in the natural resources sector, with a diversified portfolio that spans several critical industries. The company’s strong financial performance, strategic investments, and commitment to sustainability position it well for future growth. As the world continues to move towards decarbonization and energy transition, Vedanta’s role in supplying the necessary resources for this transition will become increasingly important.