Bharti Infratel shares jumped as much as 3.85 per cent after the telecom tower infrastructure provider on Tuesday approved proposal to buyback equity shares worth Rs 2,000 crore at Rs 450 per share. The company also reported 19 per cent year-on-year jump in net profit at Rs 662 crore for the quarter ended March 31, 2016, on the back of growth in network rollout by operators.
At 12.25 pm, shares of Bharti Infratel were trading 3.28 per cent up at Rs 375.75. The scrip opened at Rs 375 and has touched a high and low of Rs 377.80 and Rs 371.75, respectively, in trade so far. Later, the share price of the ended 3.17 per cent up at Rs 375.35.
Bharti Infratel posted a net profit of Rs 558 crore in the same period last fiscal.
Revenue of the company also increased 7 per cent to Rs 3,162 crore for the reported period compared with Rs 2,947 crore last year. The company also announced buyback of equity shares worth Rs 2,000 crore and proposed a dividend of Rs 3 per share.
“The total cash outgo for dividend and buyback inclusive of Rs 116 crore as tax on dividend will amount to Rs 2,685 crore,” the company had said in a statement.
Kotak Institutional Equities calls dividend and buyback announcements a “good move” and said it would review its estimates and price target for Bharti Infratel after earnings call.