Mayur Uniquoters Limited , a prominent player in the Indian stock market, has unveiled a significant share buyback program, demonstrating confidence in its financial position and commitment to enhancing shareholder value.

Buyback Details

The company's board has approved a share repurchase plan with the following key features:

Implementation and Funding

The buyback will be executed through a tender offer route on a proportionate basis. Shareholders, as of the record date, will have the opportunity to participate in this program. The company plans to fund this initiative entirely through its current surplus, cash equivalents, and internal accruals, without resorting to borrowed funds.

Strategic Rationale

Mayur Uniquoters' board, which approved the buyback on November 10, 2020, cited several strategic reasons for this move:

1. Returning surplus funds to shareholders
2. Improving key financial ratios, including earnings per share
3. Providing shareholders with the flexibility to either participate in the buyback or potentially increase their stake in the company

Financial Implications

The total buyback amount of Rs 30.00 crores represents 5.13% of the aggregate paid-up capital and free reserves, based on the company's financial statements as of March 31, 2020. This move is expected to have a positive impact on the company's financial metrics.

Shareholding Structure

Currently, the promoter and promoter group hold a 61.48% stake in Mayur Uniquoters. The buyback could potentially alter this shareholding structure, depending on the participation of various shareholder groups.

This share buyback program by Mayur Uniquoters reflects a strategic move to optimize its capital structure and potentially boost investor confidence in the company's long-term prospects.

Mayur Uniquoters , a leading synthetic leather manufacturer, has reported mixed results for the first quarter, with a focus on high-value exports and strategic market expansion.

Financial Performance

The company's consolidated revenue grew marginally by 1% to Rs. 215.88 crores, while consolidated profit after tax (PAT) increased by 2% to Rs. 40.73 crores. On a standalone basis, the performance was more robust:

• Revenue rose 6% to Rs. 206.41 crores
• PAT jumped 19% to Rs. 41.23 crores

Export Performance

Exports continue to be a significant driver for Mayur Uniquoters, contributing 40% of total revenue at Rs. 80.05 crores. The company has received strong export orders, particularly from the United States and OEM supplies.

Segment-wise Performance

Strategic Focus

Chairman and Managing Director Suresh Kumar Poddar emphasized the company's strategy to focus on high-quality, high-price products and target multinational brands to improve profitability. The company is actively expanding its presence in various segments:

1. Footwear and Accessories: Engaging with global brands like Aditya Birla and Adidas for high-margin products.
2. Automotive Sector: Supplying to Mercedes-Benz and BMW in South Africa, with each OEM receiving approximately 35,000 meters per month.
3. Retail Expansion: Increasing the distribution network to around 1,000 dealers.
4. New Markets: Entering garment and leather goods segments with multinational brands.

Future Outlook

Despite global uncertainties, Mayur Uniquoters maintains its guidance:

• Revenue growth: 12-15%
• Profit growth: 15-20%

The company has postponed its Mexico plant expansion due to current uncertainties but remains committed to global expansion in the long term.

Tariff Impact

Regarding the recent tariff changes, particularly in the US market:

• Up to 25% tariff: The company does not foresee significant impact on its competitiveness.
• 50% tariff (if implemented): Could pose challenges, but the situation is still evolving.

Mayur Uniquoters is actively diversifying its export markets, including increased focus on Europe and the Middle East, to mitigate potential risks.

Mr. Poddar stated, "We are not leaving any stone unturned. But everything takes its time. We are sincerely working for the improvement of our company because it is a public limited company. We have to work for our shareholders."

As Mayur Uniquoters navigates through global market dynamics, its strategy of focusing on high-value products and diversifying across segments and geographies positions it to capitalize on emerging opportunities in the synthetic leather industry.