Suprajit Engineering jumped 4.74% to Rs 255.35 after the company said its approved buyback of 15 lakh shares for an aggregate amount not exceeding Rs 48 crore.
The company will buyback shares at price of Rs 320 each, which is at a 31% premium to Wednesday's closing price of Rs 243.80 per share. The record date for the buyback is set at 22 February 2021.
Suprajit Engineering also announced its third quarter earnings after market hours yesterday. The company's consolidated net profit jumped 65.5% to Rs 51.63 crore on a 23% rise in net sales to Rs 507.27 crore in Q3 FY21 over Q3 FY20.
Operating EBITDA improved by 72.4% to Rs 86.36 crore in the December quarter from Rs 50.09 crore in the corresponding period last year.
Profit before tax in Q3 December 2020 stood at Rs 73.64 crore, up by 108.6% from Rs 35.30 crore in Q3 December 2019. Current tax outgo in the third quarter surged to Rs 19.74 crore from Rs 7.28 crore in the same period last year.
Also Read
Suprajit Engineering said that the resurgence of Covid-19 in UK, Europe and US is a matter of concern. Shortages of certain electronic parts are affecting customers both in automotive and non-automotive segments across the world, leading to production schedule changes and disruptions.
"Covid-19 scenario in India seems to be further improving with reducing infections and deaths a, increased recoveries, leading to stability in the economic front. The demand scenario In India appears to be stable, currently. There has been a significant increase In commodity prices leading to Input costs going up across group companies.
The company is taking effective steps to contain such costs through various measures Including approaching customers for a price increase. The overall effect needs to be closely monitored.
There has been significant port congestion across the world disrupting shipments and deliveries, leading to enhanced freight rates, delayed shipments, disrupting the general supply chain across the board. Despite these concerns, the Q4 performance of the company is expected to be satisfactory, it added.
Suprajit Engineering is India's largest automotive cable and halogen bulb maker with an annual global capacity of 300 million cables and 110 million halogen bulbs. The company's customer list includes most Indian automotive majors. It also exports to many marquee global customers.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
