Site icon Telangana NavaNirmana Sena

Vedanta Q4 Results, Share News, Profit Surge, and Demerger Plans

skannegari
Vedanta Limited, a global leader in natural resources, has once again captured the spotlight with its stellar Q4 performance and strategic business moves. The company’s subsidiary, Hindustan Zinc, reported a remarkable 47% profit surge, while Vedanta itself gears up for its Q4 results announcement. Coupled with a robust dividend track record and an ambitious demerger plan, Vedanta continues to be a compelling investment opportunity. This article dives deep into Vedanta’s Q4 results, share price trends, profit metrics, earnings per share (EPS) growth, and the transformative demerger strategy, offering investors a comprehensive guide to navigating this dynamic stock. Hindustan Zinc Q4 Results: A 47% Profit Leap Hindustan Zinc, a Vedanta Group company and India’s leading zinc producer, announced its Q4 results for the fiscal year 2024-25, showcasing exceptional financial growth. The company reported a 47.3% year-on-year increase in consolidated net profit, reaching ₹3,003 crore, driven by higher income and operational efficiencies. This marks a significant jump from the previous year’s Q4 profit of approximately ₹2,038 crore. Revenue Growth and Operational Excellence Hindustan Zinc’s revenue for Q4 FY25 rose by 20% year-on-year to ₹9,340 crore, compared to ₹7,822 crore in Q4 FY24. The zinc division, which commands a 75% share of the domestic zinc market, recorded a 20.6% increase in revenue, while the silver segment, the company’s second-largest business, saw a 24.1% revenue uptick. These gains were fueled by record-high mined metal production of 310,000 tonnes, a 4% increase from the previous year, attributed to improved grades and mill recovery. Strategic Achievements The company’s management expressed optimism about the results, emphasizing the robust performance as a testament to its focus on cost optimization and production ramp-up. Hindustan Zinc’s ability to achieve such strong numbers in a competitive market underscores its operational resilience and market dominance. The company’s statement highlighted, “Our Q4 performance reflects a 47% profit jump on a year-on-year basis, a milestone that brings immense pride and signals our commitment to delivering value to stakeholders.” Vedanta Q4 Results: What to Expect Vedanta Limited is set to announce its Q4 FY25 results on April 30, 2025, following a board meeting to review the unaudited financial statements for the quarter and the full fiscal year. The company has already informed stock exchanges about the closure of its trading window from April 1, 2025, to prevent insider trading, which will reopen 48 hours after the results are declared on May 2, 2025. Conference Call and Investor Engagement Vedanta will host a conference call on April 30, 2025, from 5:00 PM to 6:00 PM IST to discuss the Q4 results with investors, shareholders, and analysts. The call will be recorded and made available on the company’s website by May 1, 2025. This transparent approach ensures that stakeholders gain insights into the company’s performance, strategic decisions, and future outlook directly from senior management. Anticipated Financial Metrics While specific Q4 projections are not yet public, Vedanta’s Q3 FY25 performance offers clues about its trajectory. In Q3, Vedanta reported a 70% year-on-year increase in net profit to ₹4,876 crore, up from ₹2,868 crore in Q3 FY24. Consolidated revenue grew by 10.2% to ₹38,526 crore, driven by favorable commodity prices and higher premiums. The company’s EBITDA surged by 30.2% to ₹11,284 crore, with an EBITDA margin of 34%. Analysts expect Vedanta’s Q4 EBITDA to rise by more than 10% quarter-on-quarter, supported by firm commodity prices and lower production costs in its aluminium and zinc divisions. The company’s focus on cost efficiencies, volume growth, and favorable market conditions positions it for another strong quarter. Vedanta Share Price: Trends and Technical Analysis As of the latest trading session, Vedanta’s stock closed at ₹412, reflecting a 1.89% decline, attributed to profit booking after a period of market bullishness. Despite this correction, the stock has shown remarkable resilience over the long term, delivering multibagger returns over the past five years. Historical Performance 3-Month High: ₹476 1-Year High: ₹526 (also the 5-year high) 3-Month Low: ₹363 (also the 1-year low) 3-Year Low: ₹226 5-Year Low: ₹75 Vedanta’s stock has been a standout performer, with a 60.58% gain over the past year, 32.31% over two years, and an impressive 184.31% over five years. However, recent market corrections have led to a 7% decline over the past three months, aligning with broader market trends. Technical Indicators Relative Strength Index (RSI): At 42.5, indicating the stock is neither overbought nor oversold, presenting a balanced entry point for investors. Beta: 1.3 (over one year), signaling high volatility but also potential for significant returns. Moving Averages: The stock is trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, suggesting a short-term bearish trend but potential for recovery if market sentiment improves. Analysts remain optimistic, with brokerage firms like CLSA maintaining an “Outperform” rating and a target price of ₹530, citing controlled leverage, high dividend yields, and strong project commissioning. Nuvama projects a 10%+ EBITDA growth for Q4, driven by firm aluminium and zinc prices. Dividend Track Record: A Wealth Creator Vedanta is renowned as a dividend king, consistently rewarding shareholders with substantial payouts. For FY25, the company has declared a total dividend of ₹43.5 per share, including a fourth interim dividend of ₹8.5 per share approved on December 16, 2024, amounting to a payout of ₹3,324 crore. Over the past 12 months, Vedanta has paid ₹46 per share, translating to a dividend yield of 7.05% as of April 24, 2025. Dividend History December 24, 2024: ₹8.5 per share September 10, 2024: ₹20 per share August 2, 2024: ₹4 per share May 24, 2024: ₹11 per share This high dividend yield, compared to peers like Adani Enterprises (0.05%), Grasim Industries (0.37%), and Pidilite Industries (0.52%), makes Vedanta a favorite among income-focused investors. The company’s ability to sustain such payouts reflects its strong cash flow generation and commitment to shareholder value. Future Dividend Outlook While Vedanta has not disclosed specific dividend plans for Q4, analysts anticipate another generous payout, potentially announced during the April 30 board meeting. The company’s robust financial performance and deleveraging efforts provide ample room for maintaining its high-yield status. Vedanta Demerger: Unlocking Value for Shareholders One of the most transformative developments for Vedanta is its demerger plan, set to be completed by September 30, 2025. The company aims to split its operations into five independent entities, creating focused businesses in aluminium, oil and gas, power, iron and steel, and base metals (retained under the legacy Vedanta entity). This strategic move is designed to enhance operational efficiency, attract segment-specific investors, and unlock significant shareholder value. Demerger Structure Under the demerger, shareholders holding one Vedanta share will receive four additional shares in the new entities, resulting in a total of five shares. This structure ensures that investors retain exposure to Vedanta’s diverse portfolio while benefiting from the growth potential of each standalone business. Benefits of the Demerger Focused Management: Each entity will operate independently, allowing for tailored strategies and faster decision-making. Value Unlocking: The demerger is expected to enhance the valuation of individual businesses, as investors can choose segments aligning with their investment goals. Dividend Growth Potential: Independent entities may adopt their own dividend policies, potentially increasing overall payouts. Market Appeal: Segment-specific businesses are likely to attract foreign direct investment (FDI) and institutional interest, boosting liquidity and stock prices. Progress and Timeline The demerger process is well underway, with shareholder and creditor approvals secured in February 2025. The National Company Law Tribunal (NCLT) is expected to grant final approval within 4-6 weeks, potentially concluding the process by the June 2025 quarter. The cancellation of the base metals demerger, announced in December 2024, reflects Vedanta’s focus on reviving its copper business in Thoothukudi, Tamil Nadu, which will remain part of the legacy entity. Financial Performance: A Deep Dive Vedanta’s financial metrics for Q3 FY25 provide a strong foundation for anticipating Q4 outcomes. Here’s a detailed breakdown of key indicators: Revenue and Sales Q3 FY25: Consolidated revenue of ₹38,526 crore, a 10.2% increase from ₹34,937 crore in Q3 FY24. Q2 FY25: Revenue of ₹37,171 crore, down 4% year-on-year, indicating a recovery in Q3. Historical Q4 (March 2024): Total sales of ₹35,590 crore, suggesting potential for further growth in Q4 FY25 given the upward trend. EBITDA and Margins Q3 FY25: EBITDA of ₹11,284 crore, up 30.2% year-on-year, with a margin of 34%. Q2 FY25: EBITDA of ₹10,364 crore, up 44% year-on-year, reflecting consistent profitability improvements. Historical Q4 (March 2024): Operating profit of ₹8,768 crore, which surged to ₹11,140 crore in Q3 FY25, indicating strong margin expansion potential for Q4. Net Profit Q3 FY25: Net profit of ₹4,876 crore, a 70% jump from ₹2,868 crore in Q3 FY24. Q2 FY25: Net profit of ₹5,603 crore, compared to a loss of ₹915 crore in Q2 FY24. Historical Q4 (March 2024): Net profit of ₹2,275 crore, which doubled to ₹4,876 crore in Q3 FY25, signaling robust earnings growth. Earnings Per Share (EPS) Q3 FY25: EPS of ₹9.09, a significant rise from ₹3.68 in Q3 FY24. Historical Q4 (March 2024): EPS of ₹3.68, with analysts projecting further growth in Q4 FY25 due to sustained profitability. Other Income and Expenses Q3 FY25: Other income of ₹680 crore, up from ₹385 crore in Q4 FY24. Expenses: Operating expenses increased to rere**₹28,100 crore** in Q3 FY25 from ₹26,741 crore in Q4 FY24, reflecting higher business activity. Debt and Cash Flow Q2 FY25: Gross debt of ₹78,654 crore and net debt of ₹56,927 crore, down ₹4,400 crore from the previous quarter. Q3 FY25: Cash and cash equivalents improved by 66% year-on-year, driven by a free cash flow (pre-capex) of ₹6,766 crore. These metrics highlight Vedanta’s ability to balance growth, profitability, and deleveraging, positioning it for a strong Q4 performance. Market Sentiment and Analyst Outlook Market sentiment toward Vedanta remains broadly positive, driven by its strong fundamentals, high dividend yield, and transformative demerger plans. Posts on X reflect mixed views, with some users praising Vedanta’s dividend consistency and growth potential, while others express caution due to debt concerns and market volatility. However, these posts are inconclusive and should be viewed as sentiment rather than factual evidence. Analyst Recommendations CLSA: “Outperform” rating with a ₹530 target, citing controlled leverage and high dividend yields. Nuvama: Expects 10%+ EBITDA growth in Q4, driven by firm commodity prices and cost efficiencies. Motilal Oswal: “Neutral” rating with a ₹500 target, acknowledging strong fundamentals but cautious about short-term volatility. Equirus: “Buy” rating with a ₹560 target, projecting an 8.4% revenue CAGR, 16% EBITDA CAGR, and 76.5% net profit CAGR over the coming years. Of the 15 analysts covering Vedanta, nine recommend “Buy,” five suggest “Hold,” and one advises “Sell,” reflecting a generally bullish outlook. FDI and Institutional Interest Vedanta’s diversified portfolio and upcoming demerger are expected to attract foreign direct investment (FDI) and institutional interest. The company’s operations in high-demand sectors like aluminium, zinc, and renewable energy align with global trends, enhancing its appeal to international investors. Investment Considerations: Risks and Opportunities Opportunities High Dividend Yield: A 7.05% yield offers attractive income potential for long-term investors. Demerger Benefits: The creation of five independent entities could unlock significant value and drive stock price appreciation. Strong Financials: Consistent revenue, EBITDA, and profit growth signal operational strength. Commodity Price Tailwinds: Firm prices for aluminium, zinc, and silver support profitability. Risks Market Volatility: The stock’s 1.3 beta indicates high sensitivity to market fluctuations. Debt Levels: While deleveraging is underway, gross debt of ₹78,654 crore remains a concern. Regulatory Hurdles: Delays in NCLT approvals or environmental compliance issues could impact the demerger timeline. Profit Booking: Recent corrections suggest potential for further short-term declines if market sentiment weakens. Investors should conduct thorough research and consult financial advisors before making investment decisions, as market conditions and company-specific factors can influence outcomes. Conclusion: Why Vedanta Remains a Compelling Investment Vedanta Limited stands at a pivotal moment, blending strong financial performance, a lucrative dividend policy, and a transformative demerger strategy. Hindustan Zinc’s 47% profit surge in Q4 FY25 sets a positive tone for Vedanta’s upcoming results, while the company’s 70% net profit growth in Q3 underscores its operational prowess. With a 7.05% dividend yield, a ₹530–560 target price from leading analysts, and a demerger poised to unlock value by September 2025, Vedanta offers a unique blend of income, growth, and diversification. As the company prepares to announce its Q4 results on April 30, 2025, investors should closely monitor the conference call for insights into dividends, demerger progress, and future guidance. While risks like market volatility and debt levels warrant caution, Vedanta’s robust fundamentals and strategic vision make it a standout choice for those seeking long-term wealth creation. For the latest updates on Vedanta’s Q4 results, share price movements, and demerger developments, stay tuned to reliable financial news sources and the company’s official announcements. Before investing, always perform due diligence and seek professional advice to align your strategy with your financial goals.

Vedanta Limited, a global leader in natural resources, has once again captured the spotlight with its stellar Q4 performance and strategic business moves. The company’s subsidiary, Hindustan Zinc, reported a remarkable 47% profit surge, while Vedanta itself gears up for its Q4 results announcement. Coupled with a robust dividend track record and an ambitious demerger plan, Vedanta continues to be a compelling investment opportunity. This article dives deep into Vedanta’s Q4 results, share price trends, profit metrics, earnings per share (EPS) growth, and the transformative demerger strategy, offering investors a comprehensive guide to navigating this dynamic stock.

Hindustan Zinc Q4 Results: A 47% Profit Leap

Hindustan Zinc, a Vedanta Group company and India’s leading zinc producer, announced its Q4 results for the fiscal year 2024-25, showcasing exceptional financial growth. The company reported a 47.3% year-on-year increase in consolidated net profit, reaching ₹3,003 crore, driven by higher income and operational efficiencies. This marks a significant jump from the previous year’s Q4 profit of approximately ₹2,038 crore.

Revenue Growth and Operational Excellence

Hindustan Zinc’s revenue for Q4 FY25 rose by 20% year-on-year to ₹9,340 crore, compared to ₹7,822 crore in Q4 FY24. The zinc division, which commands a 75% share of the domestic zinc market, recorded a 20.6% increase in revenue, while the silver segment, the company’s second-largest business, saw a 24.1% revenue uptick. These gains were fueled by record-high mined metal production of 310,000 tonnes, a 4% increase from the previous year, attributed to improved grades and mill recovery.

Strategic Achievements

The company’s management expressed optimism about the results, emphasizing the robust performance as a testament to its focus on cost optimization and production ramp-up. Hindustan Zinc’s ability to achieve such strong numbers in a competitive market underscores its operational resilience and market dominance. The company’s statement highlighted, “Our Q4 performance reflects a 47% profit jump on a year-on-year basis, a milestone that brings immense pride and signals our commitment to delivering value to stakeholders.”

Vedanta Q4 Results: What to Expect

Vedanta Limited is set to announce its Q4 FY25 results on April 30, 2025, following a board meeting to review the unaudited financial statements for the quarter and the full fiscal year. The company has already informed stock exchanges about the closure of its trading window from April 1, 2025, to prevent insider trading, which will reopen 48 hours after the results are declared on May 2, 2025.

Conference Call and Investor Engagement

Vedanta will host a conference call on April 30, 2025, from 5:00 PM to 6:00 PM IST to discuss the Q4 results with investors, shareholders, and analysts. The call will be recorded and made available on the company’s website by May 1, 2025. This transparent approach ensures that stakeholders gain insights into the company’s performance, strategic decisions, and future outlook directly from senior management.

Anticipated Financial Metrics

While specific Q4 projections are not yet public, Vedanta’s Q3 FY25 performance offers clues about its trajectory. In Q3, Vedanta reported a 70% year-on-year increase in net profit to ₹4,876 crore, up from ₹2,868 crore in Q3 FY24. Consolidated revenue grew by 10.2% to ₹38,526 crore, driven by favorable commodity prices and higher premiums. The company’s EBITDA surged by 30.2% to ₹11,284 crore, with an EBITDA margin of 34%.

Analysts expect Vedanta’s Q4 EBITDA to rise by more than 10% quarter-on-quarter, supported by firm commodity prices and lower production costs in its aluminium and zinc divisions. The company’s focus on cost efficiencies, volume growth, and favorable market conditions positions it for another strong quarter.

Vedanta Share Price: Trends and Technical Analysis

As of the latest trading session, Vedanta’s stock closed at ₹412, reflecting a 1.89% decline, attributed to profit booking after a period of market bullishness. Despite this correction, the stock has shown remarkable resilience over the long term, delivering multibagger returns over the past five years.

Historical Performance

Vedanta’s stock has been a standout performer, with a 60.58% gain over the past year, 32.31% over two years, and an impressive 184.31% over five years. However, recent market corrections have led to a 7% decline over the past three months, aligning with broader market trends.

Technical Indicators

Analysts remain optimistic, with brokerage firms like CLSA maintaining an “Outperform” rating and a target price of ₹530, citing controlled leverage, high dividend yields, and strong project commissioning. Nuvama projects a 10%+ EBITDA growth for Q4, driven by firm aluminium and zinc prices.

Dividend Track Record: A Wealth Creator

Vedanta is renowned as a dividend king, consistently rewarding shareholders with substantial payouts. For FY25, the company has declared a total dividend of ₹43.5 per share, including a fourth interim dividend of ₹8.5 per share approved on December 16, 2024, amounting to a payout of ₹3,324 crore. Over the past 12 months, Vedanta has paid ₹46 per share, translating to a dividend yield of 7.05% as of April 24, 2025.

Dividend History

This high dividend yield, compared to peers like Adani Enterprises (0.05%), Grasim Industries (0.37%), and Pidilite Industries (0.52%), makes Vedanta a favorite among income-focused investors. The company’s ability to sustain such payouts reflects its strong cash flow generation and commitment to shareholder value.

Future Dividend Outlook

While Vedanta has not disclosed specific dividend plans for Q4, analysts anticipate another generous payout, potentially announced during the April 30 board meeting. The company’s robust financial performance and deleveraging efforts provide ample room for maintaining its high-yield status.

Vedanta Demerger: Unlocking Value for Shareholders

One of the most transformative developments for Vedanta is its demerger plan, set to be completed by September 30, 2025. The company aims to split its operations into five independent entities, creating focused businesses in aluminium, oil and gas, power, iron and steel, and base metals (retained under the legacy Vedanta entity). This strategic move is designed to enhance operational efficiency, attract segment-specific investors, and unlock significant shareholder value.

Demerger Structure

Under the demerger, shareholders holding one Vedanta share will receive four additional shares in the new entities, resulting in a total of five shares. This structure ensures that investors retain exposure to Vedanta’s diverse portfolio while benefiting from the growth potential of each standalone business.

Benefits of the Demerger

  1. Focused Management: Each entity will operate independently, allowing for tailored strategies and faster decision-making.
  2. Value Unlocking: The demerger is expected to enhance the valuation of individual businesses, as investors can choose segments aligning with their investment goals.
  3. Dividend Growth Potential: Independent entities may adopt their own dividend policies, potentially increasing overall payouts.
  4. Market Appeal: Segment-specific businesses are likely to attract foreign direct investment (FDI) and institutional interest, boosting liquidity and stock prices.

Progress and Timeline

The demerger process is well underway, with shareholder and creditor approvals secured in February 2025. The National Company Law Tribunal (NCLT) is expected to grant final approval within 4-6 weeks, potentially concluding the process by the June 2025 quarter. The cancellation of the base metals demerger, announced in December 2024, reflects Vedanta’s focus on reviving its copper business in Thoothukudi, Tamil Nadu, which will remain part of the legacy entity.

Financial Performance: A Deep Dive

Vedanta’s financial metrics for Q3 FY25 provide a strong foundation for anticipating Q4 outcomes. Here’s a detailed breakdown of key indicators:

Revenue and Sales

EBITDA and Margins

Net Profit

Earnings Per Share (EPS)

Other Income and Expenses

Debt and Cash Flow

These metrics highlight Vedanta’s ability to balance growth, profitability, and deleveraging, positioning it for a strong Q4 performance.

Market Sentiment and Analyst Outlook

Market sentiment toward Vedanta remains broadly positive, driven by its strong fundamentals, high dividend yield, and transformative demerger plans. Posts on X reflect mixed views, with some users praising Vedanta’s dividend consistency and growth potential, while others express caution due to debt concerns and market volatility. However, these posts are inconclusive and should be viewed as sentiment rather than factual evidence.

Analyst Recommendations

Of the 15 analysts covering Vedanta, nine recommend “Buy,” five suggest “Hold,” and one advises “Sell,” reflecting a generally bullish outlook.

FDI and Institutional Interest

Vedanta’s diversified portfolio and upcoming demerger are expected to attract foreign direct investment (FDI) and institutional interest. The company’s operations in high-demand sectors like aluminium, zinc, and renewable energy align with global trends, enhancing its appeal to international investors.

Investment Considerations: Risks and Opportunities

Opportunities

  1. High Dividend Yield: A 7.05% yield offers attractive income potential for long-term investors.
  2. Demerger Benefits: The creation of five independent entities could unlock significant value and drive stock price appreciation.
  3. Strong Financials: Consistent revenue, EBITDA, and profit growth signal operational strength.
  4. Commodity Price Tailwinds: Firm prices for aluminium, zinc, and silver support profitability.

Risks

  1. Market Volatility: The stock’s 1.3 beta indicates high sensitivity to market fluctuations.
  2. Debt Levels: While deleveraging is underway, gross debt of ₹78,654 crore remains a concern.
  3. Regulatory Hurdles: Delays in NCLT approvals or environmental compliance issues could impact the demerger timeline.
  4. Profit Booking: Recent corrections suggest potential for further short-term declines if market sentiment weakens.

Investors should conduct thorough research and consult financial advisors before making investment decisions, as market conditions and company-specific factors can influence outcomes.

Conclusion: Why Vedanta Remains a Compelling Investment

Vedanta Limited stands at a pivotal moment, blending strong financial performance, a lucrative dividend policy, and a transformative demerger strategy. Hindustan Zinc’s 47% profit surge in Q4 FY25 sets a positive tone for Vedanta’s upcoming results, while the company’s 70% net profit growth in Q3 underscores its operational prowess. With a 7.05% dividend yield, a ₹530–560 target price from leading analysts, and a demerger poised to unlock value by September 2025, Vedanta offers a unique blend of income, growth, and diversification.

As the company prepares to announce its Q4 results on April 30, 2025, investors should closely monitor the conference call for insights into dividends, demerger progress, and future guidance. While risks like market volatility and debt levels warrant caution, Vedanta’s robust fundamentals and strategic vision make it a standout choice for those seeking long-term wealth creation.

For the latest updates on Vedanta’s Q4 results, share price movements, and demerger developments, stay tuned to reliable financial news sources and the company’s official announcements. Before investing, always perform due diligence and seek professional advice to align your strategy with your financial goals.

Exit mobile version