Majesco Ltd Q3FY21 net profit at Rs. 27.76 crore

Majesco Ltd has reported financial results for the period ended December 31, 2020.

Financial Results (Q3 FY20-21) - QoQ Comparison

The company has reported total income of Rs.38.41 crores during the period ended December 31, 2020 as compared to Rs.5.81 crores during the period ended September 30, 2020.

The company has posted net profit / (loss) of Rs.27.76 crores for the period ended December 31, 2020 as against net profit / (loss) of Rs.2510.84 crores for the period ended September 30, 2020.

The company has reported EPS of Rs.9.27 for the period ended December 31, 2020 as compared to Rs.851.20 for the period ended September 30, 2020.

Financials	Q3 FY20-21	Q2 FY20-21	% Change
Total Income	₹ 38.41 crs	₹ 5.81 crs	561.1%
Net Profit	₹ 27.76 crs	₹ 2510.84 crs	-98.89%
EPS	₹ 9.27	₹ 851.20	-98.91%

Financial Results (Q3 FY20-21) - YoY Comparison

The company has reported total income of Rs.38.41 crores during the period ended December 31, 2020 as compared to Rs.4.71 crores during the period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.27.76 crores for the period ended December 31, 2020 as against net profit / (loss) of Rs.0.86 crores for the period ended December 31, 2019.

The company has reported EPS of Rs.9.27 for the period ended December 31, 2020 as compared to Rs.0.29 for the period ended December 31, 2019.

Financials	Q3 FY20-21	Q3 FY19-20	% Change
Total Income	₹ 38.41 crs	₹ 4.71 crs	715.5%
Net Profit	₹ 27.76 crs	₹ 0.86 crs	3127.91%
EPS	₹ 9.27	₹ 0.29	3096.55%

Financial Results (9 Months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.47.84 crores during the 9 months period ended December 31, 2020 as compared to Rs.15.08 crores during the 9 months period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.2539.82 crores for the 9 months period ended December 31, 2020 as against net profit / (loss) of Rs.22.47 crores for the 9 months period ended December 31, 2019.

The company has reported EPS of Rs.867.52 for the 9 months period ended December 31, 2020 as compared to Rs.7.58 for the 9 months period ended December 31, 2019.

Financials	9 Months ended FY20-21	9 Months ended FY19-20	% Change
Total Income	₹ 47.84 crs	₹ 15.08 crs	217.24%
Net Profit	₹ 2539.82 crs	₹ 22.47 crs	11203.16%
EPS	₹ 867.52	₹7.58	11344.85%

The company received the proceeds on the sale of investment in Majesco US in Q2FY21 which resulted in exceptional profit. During the current quarter the company has completed the share buyback and disbursed the balance free reserves as dividend to the shareholders. The total revenue during the quarter reflects the income earned on the invested funds and the lease rental on the Mahape property.

Commenting on Q3FY21 Performance, Farid Kazani, Managing Director, Majesco Ltd said: "This has been an extremely busy quarter with completion of share buyback and disbursement of record dividend to shareholders within committed timelines. During the quarter, we were able to maximize the interest income earnings on the funds parked in fixed deposits and mutual funds. While the financial performance for the quarter is not comparable with past period, we ended December 31, 2020 with a total revenue of Rs. 38.4 crore and a PAT of Rs. 27.8 crore. We are seeking necessary advice on the next steps to be able to distribute the balance cash to shareholders in an optimal manner and would keep the investors/shareholders updated of the developments."

The Board of Directors of the Company at its meeting held on October 8, 2020, approved a proposal to buyback of upto 74,70,540 fully paid-up equity shares of face value of Rs. 5 per share of the Company for an aggregate amount not exceeding Rs. 631.26 crore being 24.78% of the total paid up equity share capital at Rs. 845 per equity share, which was approved by the shareholders on November 2, 2020 by means of a special resolution in Extra Ordinary General Meeting. A Letter of Offer was made to all eligible shareholders. The Company bought back 15,74,088 equity shares out of the shares that were tendered by eligible shareholders and extinguished the equity shares on December 23, 2020 and paid Rs. 133.01 crore to the shareholders. In addition, the company has paid Rs. 30.84 crore as buyback tax and Rs. 5.7 crore for expenses related to buyback.

The Board of Directors of the Company at its meeting held on December 15, 2020 declared an Interim Dividend at the rate of 19480% i.e. Rs. 974 per equity share of face value of Rs. 5 per share. During the quarter, the company has declared total dividend of Rs. 2,788.53 crore out of which Rs. 297.04 crore remains payable as on December 31, 2020 including the tax deducted at source (of Rs. 282.66 crore) from dividend paid to shareholders. The Company has complied with necessary provisions of The Companies Act, 2013 relating to payment of dividend and also paid the TDS to the department on January 7 2021.

The existing property at Mahape admeasuring approx. 1.2 lakh sq feet lies vacant with the exit of the erstwhile tenant w.e.f January 1, 2021. The construction of the new building admeasuring approx. 0.4 lakh sq feet is progressing well and likely to be completed by End April 2021. The company is engaged with real estate intermediaries and considering various options and structures for either sale or lease of entire premises.

Shares of Majesco Ltd was last trading in BSE at Rs.26.05 as compared to the previous close of Rs. 24.85. The total number of shares traded during the day was 1179 in over 80 trades.

The stock hit an intraday high of Rs. 26.05 and intraday low of 26.05. The net turnover during the day was Rs. 30712.

Source : Equity Bulls

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