Sastasundar Ventures , through its material subsidiary Sastasundar Healthbuddy Limited (SHBL), has announced a significant share buyback program, demonstrating confidence in its financial position and commitment to enhancing shareholder value.

Buyback Details

The Board of Directors of Sastasundar Healthbuddy Limited approved a buyback proposal with the following key details:

This strategic move is subject to shareholder approval from Sastasundar Healthbuddy Limited.

Regulatory Compliance and Trading Window

In compliance with regulatory requirements, Sastasundar Ventures has disclosed this material development to the stock exchanges. The company has implemented the following measures:

• The trading window for company securities will remain closed for designated persons and their immediate relatives.
• The closure is effective immediately and will continue until further notice.

This temporary restriction on trading aligns with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company's internal code of conduct for preventing insider trading.

Impact and Outlook

The buyback initiative, valued at Rs 100.00 crore, signals the management's confidence in the company's future prospects and its commitment to returning value to shareholders. By reducing the number of outstanding shares, the buyback could potentially lead to improved earnings per share and overall shareholder value.

Investors and market participants will be closely watching the shareholder approval process and the subsequent execution of the buyback program. The move may also impact the stock price and trading volumes of Sastasundar Ventures, given SHBL's status as a material subsidiary.

As the healthcare and digital health sectors continue to evolve, Sastasundar Healthbuddy's strategic decisions will be crucial in shaping its market position and financial performance.

Sastasundar Ventures Limited, a healthcare digital platform operator, has released its financial results for the first quarter, revealing a mixed performance across its business segments.

Revenue Growth and Segment Performance

The company reported total revenue of ₹298.40 crores, with overall revenue from operations growing by 5.9% year-over-year to ₹278.50 crores. This growth was primarily driven by the company's B2B segment, RetailerShakti, which saw a significant increase of 30.9% in revenue, reaching ₹244.50 crores.

However, the B2C segment, SastaSundar, experienced a substantial decline of 55.7%, with revenue dropping to ₹33.30 crores. This stark contrast between the B2B and B2C performance highlights the shifting dynamics within the company's business model.

Financial Services and Profitability

The Financial Services segment showed remarkable growth, with revenue surging by 168.9% to ₹19.90 crores. Despite this positive trend, the company's overall profitability remained challenging. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at -₹13.80 crores, compared to -₹9.70 crores in the previous year, indicating increased operational pressures.

Profit After Tax and Balance Sheet Strength

Profit After Tax (PAT) was positive at ₹26.60 crores, although it decreased by 35.1% year-over-year. The company maintains a strong balance sheet with total assets of ₹974.40 crores, including ₹655.00 crores in liquid assets. This robust financial position provides Sastasundar Ventures with a solid foundation for future growth and investment opportunities.

Working Capital Management

Sastasundar Ventures has shown improvement in its working capital management. Inventory days reduced from 40 to 36 days, indicating better inventory turnover and operational efficiency. The company's focus on optimizing its working capital cycle is evident, with the overall working capital days decreasing to 32 from 36 in the previous year.

Cash Flow and Operational Challenges

Despite the revenue growth and strong balance sheet, the company faced challenges in its operating cash flow, which was negative at -₹17.30 crores. This suggests that while Sastasundar Ventures is growing its top line, it is still working on translating this growth into positive cash generation from operations.

Conclusion

Sastasundar Ventures Limited's quarterly results paint a picture of a company in transition. The strong performance of its B2B segment and Financial Services is offset by the decline in its B2C operations. While the company maintains a strong financial position, it faces challenges in profitability and cash flow generation. As Sastasundar Ventures continues to navigate these mixed results, investors and stakeholders will be watching closely to see how the company adapts its strategy to improve overall performance and capitalize on the growth in its successful segments.