Bharat Seats to set up new facility in Gujarat

Haryana-based automotive seating system manufacturer Bharat Seats informed in a stock exchange filing that it had received approval for the new production facility, on Wednesday.

The company has received final approval for setting up of new production facility in Gujarat at a total cost of approximately Rs. 38 crore, which includes the cost of land. The said project cost is proposed to be funded mainly out of internal accruals and borrowings, wherever required. The company's board meeting held on July 23, 2019 approved the same.

However, the company reported 28 per cent fall in revenue for the first quarter of FY20 on a YoY basis. At the operational level, it still managed to perform well to post an EBITDA margin of 7.2 per cent which expanded when compared to the same quarter of last fiscal. The net profit stood at Rs. 3.79 crore, YoY decline of 46 per cent.

Bharat Seats is engaged in the business of manufacturing complete seating systems and interior components for the automotive and surface transport industry. The company operates a research & development centre which handles projects from the concept stage through modelling, designing prototyping to testing and validation for the final product.

On Wednesday, at 14:17 hours, the stock of Bharat Seats traded at Rs. 56 per share, down by almost 5.49 per cent on BSE.