Vedanta's NCDs Get Rating Upgrade From India Ratings and Research

Vedanta Ltd. on Monday said that India Ratings and Research Pvt. has upgraded the mining company’s non-convertible debentures.

The credit rating agency has upgraded Vedanta's NCDs to “IND AA-/Rating Watch with Developing Implications”, an exchange filing stated. Earlier, the NCDs were rated as "IND A+/Rating Watch with Positive Implications".

At the same time, India Ratings and Research has withdrawn its rating on Vedanta’s commercial paper, the filing added.

On Monday, the miner also announced its fourth interim dividend of Rs 8.5 per equity share for fiscal 2025. The board has fixed Dec. 24 as the record date for the purpose of dividend payment.

As a result, the fourth interim dividend will see the mining conglomerate shell out Rs 3,324 crore to shareholders.

Previously, Vedanta had issued an interim dividend of Rs 20 apiece on Sept. 10 and a dividend of Rs 4 on Aug. 2. It had also issued an interim dividend of Rs 11 in May 2024.

For the September 2024 quarter, the metal producer had reported a net profit of Rs 5,603 crore compared to a loss of Rs 915 crore in the year-ago period. The profit for the second quarter included a deferred tax of Rs 1,868 crore.

The company's revenue, however, had declined 3.4% to Rs 37,634 crore as compared to Rs 38,945 crore in the corresponding quarter of the last fiscal.

Shares of Vedanta closed 1.21% lower at Rs 513.40 apiece on the BSE, compared to a 0.47% decline in the benchmark Sensex. The stock has risen 96.95% in the last 12 months and 99.67% year-to-date.

Out of 15 analysts tracking the company, nine maintain a 'buy' rating, five recommend a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 2.3%.