This India IT Company Announces Record Date For Share Buyback; Things Investors Should Know

A prominent player in the information technology sector Birlasoft Ltd has announced the buyback of up to 7,800,000 fully paid-up equity shares with a face value of Rs 2apiece, or up to 2.79 per cent of the total number of equity shares in the company’s paid-up share capital, at a price of Rs 500. The board of directors of Birlasoft Ltd has fixed July 15, 2022, as the record date for buyback of shares.

Informing Indian bourses about the record date for share buyback, Birlasoft Ltd said, “This is in continuation to the intimations made by Birlasoft Limited (“Company”), regarding approval of the Board of Directors and of the members of the Company for buyback of up to 7,800,000 fully paid equity shares of Rs. 2/- each of the Company, vide letters dated May 23, 2022, and July 1, 2022,” adding, “Pursuant to the Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 9(i) of Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, we wish to inform you that the Company has fixed Friday, July 15, 2022, as the Record Date for the purpose of determining the entitlement and names of equity shareholders who are eligible to participate in the buyback.”

“Buyback of up to 7,800,000 fully paid-up equity shares of the Company, each having a face value of INR 2/-, representing up to 2.79 per cent of the total number of equity shares in the paid-up share capital of the Company, at a price of INR 500/- payable in cash, for an aggregate amount not exceeding Rs 3,900 million/- being 24.97 per cent and 16.32 per cent of the aggregate of the fully paid-up equity share capital and free reserves of the Company as per the latest audited standalone and consolidated financial statements of the Company as at March 31, 2022, respectively (which is within the statutory limits of 25 per cent) on a proportionate basis through the “tender offer” route,” Birlasoft has mentioned on its website.

The stock’s closing price on the NSE was Rs 352.10, down 0.33 per cent from its previous close of Rs 353.25. The stock has fallen 37.90 per cent of its value so far in 2022. Birlasoft Ltd. is trading below the 5 days, 20-day, 50-day, 100-day, and 200-day moving averages as of the day’s closing price.

Birlasoft Financials

Birlasoft reported a 16.6 per cent rise in net profit to Rs 132.9 crore on a 2.8 per cent increase in revenue from operations to Rs 1,101.4 in Q4 FY22 over Q3 FY22.

As compared Q4 FY21, the company’s net profit and revenue jumped 34 per cent and 22 per cent, respectively.

EBITDA in Q4 FY22 stood at Rs 174.5 crore, rising 7.2 per cent quarter on quarter and up 14.5 per cent year on year. EBITDA margin improved 66 basis points sequentially to 15.8 per cent from 15.2 per cent reported in Q3 FY22. ON the other hand, margin declined 103 basis points year on year from 16.9 per cent reported in Q4 FY21.

In dollar terms, the company’s revenue for Q4 FY22 was $146.4 million, up 2.1 per cent QoQ and up 18.8 per cent YoY. The company said it signed deals of total contract value (TCV) $222 million during the quarter.