 "Small-cap firm Cheviot to buyback shares worth Rs 31.5 cr at Rs 1,800/ sh")
Cheviot buyback news: Shares of Cheviot Co declined 5.3 per cent to Rs 1,476 apiece on the BSE on Friday after the announcement of the small-cap company’s March quarter (Q4FY24) results.
At 2:22 PM, Cheviot stock was trading 4.11 per cent lower at Rs 1,495 per share as against a 0.08 per cent rise in the benchmark S&P BSE Sensex.
Cheviot is a small-cap company, which operates in the ‘B’ group, having the ‘T+1’ settlement cycle. It manufactures and exports jute yarns and fabrics in India and internationally. Cheviot Co operates two business segments namely Jute goods and Captive power generation. Their jute products include sacking bags, hessian cloth and bags and decorative fabrics.
Cheviot buyback announcement
During the March quarter results announcement, Cheviot said it will buyback up to 175,000 fully paid-up ordinary shares of the company, representing 2.91 per cent of the total paid-up capital of the company, at a price of Rs 1,800 per share. This will be done via tender offer.
Cheviot buyback will be worth up to Rs 31.5 crore, representing 6.52 per cent of the aggregate paid-up capital and free reserves at the end of the financial year 2024.
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The Board of Directors have fixed Friday, June 14, 2024 as the ‘Record Date’ for the purpose of determining the members/beneficial owners who shall be entitled to participate in the buyback of the company.
Cheviot Q4FY24 results, dividend announcement
During Q4FY24, Cheviot reported net profit of Rs 14.93 crore, down sequentially from a profit of Rs 17,91 crore in Q3FY24. However, on a year-on-year basis, profit was up from Rs 13.71 crore.
The profit was impacted by a surge in total expenses, which touched 114 crore in Q4FY24 as against Rs 90.96 crore in Q3FY24. In Q4FY23, the company’s total expenses were Rs 118.75 crore.
At the topline level, revenue from operations increased to Rs 122.84 crore, up from Rs 98.41 crore Q-o-Q, but down from Rs 134.83 crore Y-o-Y.
Cheviot Board recommended a final dividend of Rs 5 per ordinary share on 60,16,875 fully paid-up ordinary shares, aggregating to Rs 3 crore for the year ended March 31, 2024. The company has fixed June 14, 2024 as the Record Date fixed for the purpose of dividend. This will be subject to approval of the members at the ensuing annual general meeting (AGM) of the company to be held on Friday, August 9, 2024.