A share repurchase is a move to repurchase its own outstanding shares from existing shareholders at a premium prevailing market price. This is an alternative way to give money back to shareholders. Stock repurchases can reduce the number of shares in circulation and increase share value and return per share (EPS).
Bajaj Auto Ltd recorded 10% growth in net profit for the March 2022 quarter. It was Rs 1,332 crore in the corresponding quarter last fiscal, up from Rs 1,332 crore in the year-ago period. Under the incentive scheme, Rs 315 crore was raised as incentives from the Government of Maharashtra, resulting in higher profits.
Operating income, however, declined by 7% to Rs 7,975 crore during the period under review. The company’s EPIDTA (interest, tax, depreciation and pre-currency income) fell 10% to Rs 1,396 crore. At the same time the margin has come down to 17.5%. Bajaj Auto sold 2,71,862 units of its total vehicle in May.