Bharat Seats Ltd, a prominent automotive components manufacturer and a subsidiary of Maruti Suzuki India Ltd, has announced its first bonus share issuance in over 17 years. Shareholders will receive one bonus share for each share they hold, although the record date for this issuance is yet to be determined. This move requires approval from the company’s shareholders and regulatory bodies. The last time Bharat Seats offered bonus shares was in 2007.
Following the announcement, the company’s stock saw a notable rise of 2.9%, currently trading at ₹212. So far in 2024, the stock has gained an impressive 30%.
In addition to the bonus shares announcement, Bharat Seats reported its financial results for the September quarter. The company posted a net profit of ₹7 crore, showing no significant change from the previous year. Revenue increased modestly by 1.7%, totaling ₹291 crore. EBITDA grew by 4.7% to ₹17.8 crore, with stable margins of 6%.
Bharat Seats categorizes Maruti Suzuki India as a promoter, with Maruti holding a 14.81% stake in the company, alongside Suzuki Motor Corporation, which also holds a similar percentage. Additionally, NDR Auto Components, a listed entity, holds a 28.66% stake in Bharat Seats.
The company specializes in manufacturing seating systems, noise, vibration, and harshness (NVH) components, as well as body sealing parts for four-wheelers and two-wheelers. Bharat Seats also provides seating solutions for Indian Railways.
With the automotive industry recovering and expanding, Bharat Seats is well-positioned to leverage its expertise and its partnership with Maruti Suzuki to drive growth and enhance shareholder value.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Investors should conduct their research and consult with a financial advisor before making any investment decisions.
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