Shares of Nucleus Software fell over 5% after company announced a share buyback worth up to ₹72.4 crore, which failed to meet the market expectations.
Nucleus Software Ltd. has announced a share buyback worth up to ₹72.4 crore. The company plans to repurchase up to 4.48 lakh equity shares, representing 1.67% of its total equity.
The buyback price is set at ₹1,615 per share, reflecting a 6% premium over the current market price.
Nucleus Software’s shares have fallen by over 5%. This buyback will be the company’s third since 2017, with the previous buybacks occurring in 2017 and 2021. In the last buyback in 2021, shares were repurchased at ₹700 per share.
Nucleus Software has set September 3, 2024, as the record date for its share buyback. The company has not yet provided a specific timeline for the buyback process.
The buyback will be conducted through a “tender offer,” where the company will repurchase shares at a predetermined price.
For the June quarter, Nucleus Software reported consolidated revenue of ₹195.4 crore, down from ₹206.8 crore in Q1 FY24. The company’s profit after tax (PAT) also fell to ₹30.2 crore, compared to ₹53.6 crore in the same period last year.
Additionally, the EBITDA margin contracted sharply to 14.8% in Q1 FY25, compared to 27.7% in the year-ago period. Earnings per share (EPS) for the quarter was ₹11.28, down from ₹20 a year ago.
The order book stands at ₹813.4 crore, which includes ₹752.2 crore from product business and ₹61.2 crore from project and services business.
