FDC gained 3.04% to Rs 346.90 after the company on Friday (7 August 2020) said its board approved a proposal to buyback shares worth up to Rs 97.33 crore at a price not exceeding Rs 450 per share.
At the maximum buyback price and the maximum buyback size, the indicative maximum number of equity shares bought back would be 21.63 lakh equity shares, comprising approximately 1.27% of the total paid-up equity share capital of the company, as of 31 March 2019.The board also noted the intention of the promoter of the company to participate in the proposed buyback. Further, the board has decided 21 August 2020 as the record date for the purpose of buyback offer.
Further, FDC has entered into definitive agreements for the acquisition of additional stake in Fair Deal Corporation pharmaceutical SA, South Africa (FDC SA) through secondary acquisition of 143,000 equity shares of FDC SA (having face value of RAND 1 each) and representing 44% of the share capital of FDC SA from Pharma Q Holdings (Pharma Q), one of the joint venture partner and settlement of outstanding loan of ZAR 6.5 million equivalent to Rs 2,92,31,280 (approximately) availed by FDC SA from Pharma Q. Upon completion of the transaction, the company would be holding 93% of the equity share capital of FDC SA, whereby FDC SA would become a subsidiary of the company. The company will inform the closure of the transaction to the stock exchange in the due course.
On a consolidated basis, FDC's net profit surged 63.1% to Rs 91.92 crore on 10.3% decline in net sales to Rs 308.18 crore in Q1 June 2020 over Q1 June 2019. Profit before tax (PBT) soared 55.4% to Rs 121.36 crore in Q1 June 2020 over Q1 June 2019. Current tax expense for the quarter jumped 37.5% at Rs 30.77 crore as against Rs 22.38 crore in Q1 June 2019. Consolidated EBITDA grew 49.05% to Rs 131.55 crore in Q1 FY21 as against Rs 88.26 crore in Q1 FY20. Consolidated EBITDA margin stood at 42.69% in Q1 FY21 compared with 25.69% in Q1 FY20. The Q1 result was declared after market hours on Friday, 7 August 2020.
Commenting on the results, FDC stated: "The Q1 performance reflects the impact of the global COVID-19 pandemic and consequent lockdown across markets and is not an indicator of the underlying strength of our business. Our timely risk mitigation initiatives ensured smooth operations of our manufacturing network, thereby maintaining continuous supplies of drugs. In the meantime, we continue to focus on serving our patients and customers, ensuring safety of our employees and business continuity. We saw the impact of COVID-19 situation and lockdown in the domestic market, while trying to do better in the domestic market, we have emphasized more on delivering export orders and preponed the production schedule wherever possible. And worked on reducing/controlling costs."
FDC is a pharmaceutical research and development company, which specializes in the areas of synthetics (basic drugs), nutraceuticals, formulations and biotechnology products.
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