Vedanta shares gained 5.78% to Rs 252.4 on July 20, a day after the company declared a significant second interim dividend. The government’s move to reduce the extra excise duty imposed on crude oil production boosted the stock as well.

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Vedanta announced a second interim dividend of Rs 19.5 per share, for a total dividend distribution of Rs 7,250 crore. The entire dividend distribution for 2022-23 is presently approaching Rs 19,000 crore.

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The huge dividend distribution is essential for Vedanta Resources, which is suffering from high debt worries at a time when global interest rates have climbed dramatically.

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Aside from the second dividend, the company benefited from the government’s announcement that the fixed special excise duty on crude oil production will be reduced to Rs 17,000 per tonne from Rs 23,250 per tonne starting July 20.

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Vedanta reported a 4.8% year-on-year (YoY) drop in net profit for the fourth quarter ended March 31, 2022, at Rs 7,261 crore. The company had a net profit of Rs 7,629 crore in the same period the previous year.

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The company recorded a record consolidated revenue of Rs 39,342 crore in 4QFY22, up 41% year on year and 17% quarter on quarter, owing to greater sales volumes and stronger commodity pricing. The FY22 consolidated revenue of Rs 131,192 crore was also the highest ever, up 51% year on year. In 4QFY22, the company recorded its highest-ever consolidated EBITDA of Rs 13,768 crore.