Today’s board meeting will decide whether to repurchase shares of Bajaj Auto

On Monday, June 27, 2022, the board of Homegrown Bajaj Auto will convene to continue discussing the proposal for the buyback of the company’s fully paid-up equity shares. After notifying stock markets on June 9 that its board will consider a proposal for the buyback of fully paid-up equity shares at a meeting to be held on Tuesday, June 14, the board of the car major had earlier this month postponed a decision on its proposed share buyback.

“We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Monday, 27 June 2022, inter-alia to further deliberate on the proposal for buyback of fully paid-up equity shares of the Company in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018,” Bajaj Autoinformed in an exchange filing last week.

When a corporation buys back its own outstanding shares, it lowers the number of shares that are accessible on the open market.

Due to the board of directors’ decision to use July 1, 2022 as the record date for determining which stockholders are eligible to receive dividend payments, the auto stock will become ex-dividend this week. Subject to shareholder approval, the corporation has previously declared a dividend of 140 (1400%) for the fiscal year 2021–2022.

In comparison to the equivalent quarter of the prior fiscal year, the March 2022 quarter’s net profit for Bajaj Auto Ltd increased by 10% to $1,469 crore. The extraordinary item of 315 crore that accumulated as an incentive due from the Maharashtra government under an incentive programme was the primary cause of the greater profit.

However, operating revenue for the reviewed period decreased 7% to 7,975 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the company decreased 10% to 1,396 crore, while margins decreased to 17.5 percent. Compared to the same month a year prior, Bajaj Auto reported a little increase in overall vehicle sales, which came in at 2,75,868 units.

Shares of Bajaj Auto have increased by more than 18 percent so far in 2022 (YTD), whereas the auto stock has decreased by roughly 8 percent over the past year.