Vedanta, a diversified natural resources company, has committed to distribute 30 per cent of net profit as dividend to investors. The company will undertake future capex with a focus on volume augmentation, cost reduction, ESG and moving to value added products, said the company in its integrated annual report for last fiscal released on Saturday.

Dividend policy lays down that a minimum 30 per cent of attributable profit after tax (before exceptional items) of the company will be distributed as dividend, said the company.

Vedanta’s capital allocation policy focuses on rapid but responsible growth and maximising shareholder returns. It intentds to invest in firms having growth projects with a minimum expected IRR (internal rate of return) of 18 per cent and sustaining capex on per tonne basis.

On inorganic growth, the company said it will selectively invest in acquisitions which are accretive to existing businesses or those which have synergies with core businesses.

Lauds govt initiatives

The initiatives by the government in the recent past, such as the commodity-intensive National Infrastructure Pipeline and Production Linked Incentive scheme to boost local manufacturing, are progressing well and are instrumental in realising the vision of a self-reliant India, it said.

The Mines and Minerals (Development and Regulation) Amendment Act, 2021 is an encouraging move, which calls for private participation in the exploration of key resources such as coal and gold. This paves the way for better utilisation of natural resources potential and in ensuring better trade balance in India’s favour.

There is significant space for import substitution of minerals such as zinc and oil and gas, where India allows duty-free imports for domestic consumption, it added.

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