Vedanta Will Have $2 Billion Of Free Cash Flow For Dividend Payments In FY25, Says CFO
If the company does decide to use the entire $2 billion for dividend payments, public shareholders could receive over Rs 7,200 crore of the company's cash outflows as dividends.
![<div class="paragraphs"><p>Signage of Vedanta outside its office building. (Source: Vijay Sartape/NDTV Profit) </p></div>](https://media.assettype.com/bloombergquint%2F2024-07%2Ff1421a31-cd75-48a6-94ae-511081f4e955%2FSignage_of_Vedanta_Ltd__outside_its_office_building___Source_Vijay_Sartape_BQ_Prime___2_.jpeg?rect=0%2C0%2C1092%2C614&auto=format%2Ccompress&w=200)
Indian multinational mining company Vedanta Ltd. will have $2 billion, or around Rs 16,700 crore, of free cash flow available for dividend payments in financial year 2025, according to Chief Financial Officer Ajay Goel.
The company is targeting $6 billion in Ebitda for the current fiscal, which will lead to a free cash flow generation of $4 billion before capital expenditures, Goel told NDTV Profit. In the first quarter alone, the company generated pre-capex free cash flow of Rs 4,371 crore, or $533.9 million.
Management later explained how Vedanta's capex guidance for fiscal 2025 stands at $1.9 billion. Goel stated that Vedanta could have $2 billion in free cash flow after subtracting the entire capex amount from the pre-capex free cash flow generation target, which it could use for dividend payments if necessary.
As of the first quarter ended June 2024, 56.38% of Vedanta's total shareholding was owned by promoters and promoter groups, while 43.45% and 0.17% of the stake were held by public shareholders and the company's employee trust, respectively.
If the company does decide to use the entire $2 billion for dividend payments, public shareholders could receive over Rs 7,200 crore of the company's cash outflows as dividends.