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HomeMarket NewsBombay Burmah terminates agreement with MSTC Ltd, stock soars 10%
In compliance with SEBI regulations, Bombay Burmah informed the stock exchanges of this development and also clarified that there is no shareholding between the two companies involved and that MSTC is not a related party of Bombay Burmah Trading Corporation.
Bombay Burmah Trading Corporation has terminated its agreement with MSTC Limited, the company announced on Tuesday, November 18.
The agreement which enabled MSTC to act as a selling agent for the company's immovable properties, land, etc. via e-auctions has been terminated with effect from November 18.
Bombay Burmah decided to conclude the agreement due to an unsuccessful online bidding process, which was "inconsistent with the corporation’s strategies. Further, the company clarified, "the said termination does not have any material impact" on its operations.
In compliance with SEBI regulations, the company informed the stock exchanges of this development and also clarified that there is no shareholding between the two companies involved and that MSTC is not a related party of Bombay Burmah Trading Corporation.
Earlier this month, the company which is India's oldest publicly traded company, reported a 4.4% year-on-year decline in net profit to ₹242 crore for Q2FY25, compared with ₹253 crore in the same period last year.
Nevertheless, the company's revenue grew 3.8% to ₹4,942.8 crore from ₹4,760.8 crore a year earlier and its EBITDA rose 29.3% to ₹938.6 crore against ₹724 crore compare to a year ago. EBITDA margin also improved to 19% from 15.2% year-on-year.
Shares of Bombay Burmah, which were trading higher through the day, extended gains to surge 10.5% to ₹2,036.9. The stock is still down 10% on a year-to-date basis.
