Polaris Software defers buyback

Polaris Software Lab declined 5.89% to Rs 101.55 at 10:59 IST on BSE after the company said on Wednesday, 23 April 2008, its board has deferred a decision on buy back of equity shares.

The stock hit a high of Rs 104.80 and a low of Rs 98.50 so far during the day. The stock had a 52-week high of Rs 200.70 on 24 April 2007 and a 52-week low of Rs 63.60 on 22 January 2008.

The company’s current equity is Rs 49.33 crore. Face value per share is Rs 5.

The current price of Rs 101.55 discounts its Q4 March 2008 EPS of Rs 5.49, by a PE multiple of 18.50.

The Polaris Software board considered a buy-back proposal where members of the board drew attention to the real estate investments made by the company and suggested that the best option to maximize shareholder value from these investment should also be explored. Further, the board of Polaris Software Lab has appointed a committee to give recommendations to take a decision in this regard at its next meeting.

In March 2008, Polaris Software Lab’s wholly owned subsidiary Polaris Retail Infotech launched Smart Store, a retail software product for small retail businesses.

In February 2008, the company entered into a strategic partnership with City Networks, to provide ongoing product development and support services to City Networks.

Polaris Software Lab’s net profit rose 0.59% to Rs 13.54 crore on 0.03% growth in net sales to Rs 239.37 crore in Q4 March 2008 over Q3 December 2007.

Polaris Software Lab delivers customized software solutions and products in the domain of banking, financial services and insurance (BFSI).