Hot stock alert! Triveni Engineering soars over 15% on approval for buyback plan, healthy Q1

On the top-line front, the company recorded a 32.25% increase in net sales to Rs1,223.81cr as against Rs925.39cr a year ago same period.

Aug 11, 2020 01:08 IST India Infoline News Service

Result Analysis
Triveni Engineering & Industries on Tuesday skyrocketed by as much as 15.49% on Sensex with an intraday high of Rs82 per piece, after the company's board approved buyback proposal during the announcement of June 2020 (Q1FY21) quarterly result. Triveni has witnessed growth in both top-line and bottom-line during Q1, which further contributed to the upside on exchanges.

At around 1.32 pm, the Triveni stock has corrected and was trading at Rs77.85 per piece zooming by 9.65%. 

Buyback proposal:

The board has approved buyback of fully paid-up Equity Shares having face value of Re1 each not exceeding 61.90 lakh equity shares. These would represent 2.50% of the company's total paid-up equity share capital as on March 2020.

For the buyback, the issue price is set at Rs105 per equity share which will be payable in cash for an aggregating nearly Rs65cr which is excluding taxes payable under Income Tax Act, 1961 and expenses to be incurred for the buyback like transaction costs viz. brokerage, securities transaction tax, GST, stamp duty, etc., which is 5.31 % and 5.03% of the fully paid-up equity share capital and free reserves (including Securities Premium Account) as per the latest audited standalone and consolidated balance sheet of the Company for the financial year ended March 31, 2020.

Further, the company has set August 28, 2020, as the Record Date for determining the entitlement and the names of the Eligible Shareholders / Beneficial Owners to whom the letter of offer will be sent and who will be eligible to participate in the Buyback.

Q1FY21:

Triveni registered a whopping 145.89% rise in consolidated net profit to Rs83.75cr during Q1FY21 compared to a profit of Rs34.06cr a year ago same period.

On the top-line front, the company recorded a 32.25% increase in net sales to Rs1,223.81cr as against Rs925.39cr a year ago same period.

EBITDA, meanwhile, in the period stood at Rs160.02cr with a growth of 63.94% compared to Rs97.61cr in the same quarter last year.

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