eClerx shares battered after Q4 results, dividend, buyback announcements

Shares of eClerx Services were battered in the early trading session on Friday, a day after the company posted a decline in its Q4 net profit, and made announcements related to buyback of shares and dividend payout.

The IT consulting firm opened in the red on the bourses, and the stock edged further lower as the trading session progressed in the first hour. At 10:33 am, the scrip was valued at ₹2,298.1 apiece on the NSE, down 4.32% as against the previous day's close.

In the financial results declared a day earlier, the company's consolidated net profit declined to ₹129.89 crore in the quarter ended March 2024, down nearly 2% as compared to ₹132.35 crore in the year-ago period.

The net sales during the fourth quarter, however, increased to ₹766.53 crore from ₹693.10 crore in the corresponding period of the previous fiscal.

₹385 crore share buyback

A total of 13.75 lakh shares would be bought back as part of the offer, the company said. The record date, timelines and other requisite details of the buyback offer were yet to be released.

The amount allocated for the share buyback is 24.98% and 18.38% of the aggregate of the total paid-up equity share capital and free reserves of the company, a regulatory filing stated.

Final dividend declared

While releasing the quarterly results, eClerx board declared a final dividend of "₹1 per equity share" of face value of ₹10 each for FY24. The dividend payout is subject to the approval of shareholders at the ensuing annual general meeting (AGM), it informed the exchanges. The date of AGM was not disclosed.

Notably, the shares of eClerx have lost 10% value in 2024 so far, but has rallied by a massive 69% in the last one year period.