Revenue from operations surged by 26% to Rs 282 crore for the April-June period, as against Rs 225 crore in the corresponding period of the previous year.
Further, the board has given approval for a buyback of 12.5 lakh equity shares worth up to Rs 500 crore. The buyback price has been fixed at Rs 4,000, which represents a 37% premium from the current levels.
The buyback will be executed on a proportionate basis through the tender route.
Share buyback is a tax-efficient approach for cash redistribution to investors. It involves the repurchase of the company’s shares from shareholders, leading to a reduction in the number of shares available in the market and an increase in the actual value of the stock.
The buyback size represents 2% of the total equity of the company and 24.33% of free reserves based on the last audited financial statements for the period ended June 2023.
The Board has also acknowledged the intention of the company’s promoters and promoter groups to participate in the proposed buyback. A committee called ‘Buyback Committee’ has been formed to oversee the process. The specific details including the process, record date, timelines, and other related information will be communicated in the forthcoming letter of offer.
For the quarter ended June, the company reported an EBITDA of Rs 77 crore, with margins standing at 27.4%. Total expenses surged by 28% to Rs 214 crore during the quarter.
Additionally, the board has approved the appointment of Aakash Chaudhry as an Additional Director in the category of ‘Non-Executive Independent Director’.
Prior to the release of the results, the company’s shares closed 1.31% higher at Rs 2,911 on NSE. Over the past year, the stock has gained approximately 37%.