Vakrangee Tumbled 5% as the company cancelled its share buyback and dividend plans. Its March quarter net profit took a hard knock, too.
Why this is important?
The company reported 49.82 per cent year-on-year fall in net profit at Rs 75.96 crore for the quarter to March 2018. It had posted a net profit of Rs 151.39 crore in the same quarter last year. “Based on the current capex plan for the ATM business and increased spend in marketing expenses, the company plans to change the capital allocation policy.
Stock to be Impacted.
Vakrangee has cancelled Rs 1,250 crore buyback and dividend proposed a few months, which investors did like and stock tumbled. However, the company said it will instead spend money on buying ATMs for over 45,000 kendras for Rs 2 lakh each.