Sasken Communication Technologies jumped 7.48% to Rs 210.50 at 12:01 IST on BSE after the company's board of directors declared a special dividend of Rs 22.50 per share.
The announcement was made after market hours on Monday, 20 January 2014.Meanwhile, the S&P BSE Sensex was up 50.62 points or 0.24% at 21,255.67
On BSE, so far 2.66 lakh shares were traded in the counter as against average daily volume of 36,089 shares in the past one quarter.
The stock hit a 52-week high of Rs 216.10 in intraday trade today, 21 January 2014. The stock hit a low of Rs 203.50 so far during the day. The stock had hit a 52-week low of Rs 100.60 on 4 September 2013.
The stock had outperformed the market over the past one month till 20 January 2014, rising 6.18% compared with the Sensex's 0.59% rise. The scrip also outperformed the market in past one quarter, surging 43.48% as against Sensex's 1.54% rise.
The small-cap company has equity capital of Rs 21.47 crore. Face value per share is Rs 10.
Based on the current market price of Rs 210.50, the special dividend of Rs 22.50 per share translates into a dividend yield of 10.68%.
Sasken Communication Technologies after market hours on Monday, 20 January 2014 said that in celebration of its 25th year since incorporation, the Board at its meeting held on 20 January 2014, has declared a special dividend of Rs 22.50 per share. This is in addition to the special dividend of Rs 2.50 per equity share declared in October 2013, thus taking the total special dividend to Rs 25 per share. The dividend will be disbursed on and from 31 January 2014, the company said.
On 15 January 2014, Sasken Communication Technologies had announced 25 January 2014 as the record date for the purpose of payment of special dividend.
On a consolidated basis and as per Indian GAAP, Sasken Communication Technologies' net profit fell 19.2% to Rs 11.12 crore in Q3 December 2013 over Q2 September 2013. Revenues remained flat at Rs 113.15 crore in Q3 December 2013 over Q2 September 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 41.4% to Rs 13.58 crore in Q3 December 2013 over Q2 September 2013. The result was announced was made after market hours on Monday, 20 January 2014.
Revenues from software services rose 0.3% to Rs 108.27 crore in Q3 December 2013 over Q2 September 2013. Revenues from product group fell 4.4% to Rs 4.39 crore in Q3 December 2013 over Q2 September 2013.
Consolidated EBITDA margins were at 12% in Q3 December 2013. Services EBITDA margins were 15.1% in Q3 December 2013. Products EBITDA margins were at -60.7% in Q3 December 2013.
Revenue contribution from the top 5 customers stood at 40.5% and from top 10 customers at 59.8% in Q3 December 2013, Sasken Communication Technologies said. Four new customers were added during the quarter making the total of active customers to 139, the company added.
Speaking on the results, Rajiv C Mody, Chairman and Managing Director Sasken Communication Technologies said, While revenues have remained flat on a sequential quarter basis, we have been able to make significant improvements in our operating margins. In celebration of its 25th year since incorporation, the Board has declared a special dividend of Rs 22.50 per equity share in addition to the special dividend of Rs 2.50 declared in October 2013, thus taking the total special dividend to Rs 25 (250%). Our leadership team under the guidance of Anjan Lahiri, our CEO is putting together a plan that will see us returning to growth in the coming quarters added, Mr. Mody.
Sasken is an embedded communications solutions company, that helps businesses across the communications value chain accelerate product development life cycles. Sasken offers a unique combination of research and development consultancy, wireless software products and software services, and works with Network OEMs, Semiconductor Vendors, Terminal Device OEMs and Operators across the world. Global Fortune 500 and Tier 1 companies in these segments are part of Sasken's customer profile.
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