Wed Sep 18 00:45:04 UTC 2024: ## Vedanta’s Big Dividends Push India Inc. Payouts to Five-Year High, But Fewer Companies Share the Wealth

**Mumbai, India -** India Inc’s total dividend payouts reached a five-year high in the first quarter of the current fiscal year, driven largely by massive dividends from the Vedanta group. However, the number of companies rewarding shareholders has fallen to its lowest since April-June 2019, according to a Mint analysis.

Vedanta Ltd. and its subsidiary Hindustan Zinc Ltd. together contributed a third of India Inc’s nearly ₹43,000 crore dividend payout. This comes as 176 companies announced dividends in Q1FY25, the fewest since Q1FY20.

Analysts attribute Vedanta’s large dividend payout to the promoter’s need to clear debt. Vedanta paid nearly ₹7,821 crore in dividends in the first quarter, and HZL paid close to ₹8,028 crore.

While Vedanta’s promoter Anil Agarwal reaped significant benefits from dividends, cash-rich Tata Sons Pvt. led the race in overall dividend and share buyback earnings, exceeding ₹36,500 crore.

Public sector undertakings also contributed significantly to the high dividend payout. Despite a relatively muted earnings environment, companies like REC Ltd and Power Finance Corporation Ltd. declared large dividends.

The overall dividend payout trend reflects a contrasting picture: while a few companies like Vedanta and PSUs are rewarding shareholders generously, others are holding back due to a combination of factors, including a slowing economy and uncertain growth prospects.

Experts like Ajit Mishra of Religare Broking Ltd. suggest that companies choosing to pay out dividends may be signaling a lack of immediate expansion plans. Sandeep Bagla of Trust Mutual Fund emphasizes the importance of a balanced portfolio, with investments in both growth companies and dividend-paying stocks.

**Despite the record dividend payout, the decline in the number of participating companies underscores the ongoing economic challenges and the need for a cautious approach by investors.** The market is likely to see continued volatility and requires careful consideration of both growth potential and dividend payouts when making investment decisions.

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