Tanla Platforms informed on Friday that its board meeting will be held next week on Thursday, September 8, 2022, to consider the proposal for share buyback of the company. Tanla Platforms shares jump over 4% After the announcement of the buyback offer, 752 each traded on the BSE in the afternoon trades.
“It is informed to you that the Board of Directors of the Company will consider the proposal for buyback of equity shares of the Company including matters relating/relevant to it in its meeting which is scheduled to be held on Thursday, the 08th September, 2022. Tanla Platforms said in an exchange filing today.
a share buybackA share repurchase, also known as a share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders, usually at a premium to the prevailing market price. It can be an alternative tax-efficient way of returning money to shareholders. Share buybacks reduce the number of shares in circulation, which can increase the share price and earnings per share (EPS).
Hyderabad-based Tanla Platform provides value-added services in the cloud communications sector. Tanla Platform Share So far in 2022 (YTD) it has declined by more than 59%, and is down 17% in the one-year period. However, the stock has given multibagger returns of over 2,020% in the last five years.
The company reported a sequential and year-on-year decline in net profit for the first quarter. Its net profit fell for the quarter ended June 30, 2022 (Q1FY23) 100 crores than 140 crore in the March quarter. Tanla Platform’s revenue was up 27.7% year-on-year (YoY), however, down 6.2% from the previous quarter (Q4FY22). EBITDA margin declined 530 bps year-on-year to 16.3%.
Meanwhile, the company’s enterprise business had a 16% gross margin versus 23% in Q4FY22, while the platform business had a 96% gross margin compared to 95% in the previous quarter of March 2022.
“There were some operational headwinds in the Enterprise business in Q1, but we have our building blocks in place to accelerate our momentum in the coming quarters. We have a strong balance sheet and are excited by the opportunities ahead of us,” Uday Reddy, Founder Chairman and Chief Executive Officer (CEO), had said in a letter to shareholders.
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