This 400-crore market cap company made a substantial capex of Rs 99.18 crore: All you need to know

Capex Updates, Expansion of Production Capacity, and New Product Launches

Bharat Seats Ltd recently announced a substantial capital expenditure of approximately Rs 99.18 crore for various new programs, reflecting its commitment to growth and expansion. Here's an overview of the key investments:

1. The company is allocating Rs 52.92 crore to relocate an existing program from its Manesar plant to Maruti's supplier park in IMT Kharkhauda, Sonepat, Haryana. This relocation is slated for completion by March 2025.
2. Bharat Seats will further invest Rs 10.83 crore to expand its existing building in Bhorakalan, facilitating two-wheeler assembly for Suzuki Motor Cycle India Private Limited (SMCIPL) and new programs for Maruti Suzuki India Limited (MSIL).
3. Additionally, the company is earmarking Rs 3.80 crore to establish additional production facilities at its Bhorakalan plant, dedicated to a two-wheeler wheel assembly project for SMCIPL. These new facilities are expected to be operational by August 2024.
4. The remaining capital expenditure of Rs 31.63 crore will be allocated for new programs by MSIL and SMCIPL aligning with their ongoing business activities.

These strategic investments are integral to Bharat Seats' goal of expanding production capacity and introducing new product offerings. The company aims to boost its revenue by an impressive 15-20 per cent during the current financial year.

About Bharat Seats Ltd

Bharat Seats Ltd (Scrip ID: BHARATSE) has emerged as an enticing investment opportunity, delivering remarkable returns of over 100 per cent. Notably, it has achieved a remarkable 31 per cent quarterly net profit growth compared to the same period in the previous year. Furthermore, Bharat Seats showcases strong 3-year compounded profit and sales growth rates of 20 per cent and 21 per cent, respectively. With an attractive 3-year return on equity standing at 10 per cent, the company demonstrates its efficiency in generating profits for shareholders. Maintaining a healthy dividend payout of 24.7 per cent, Bharat Seats offers an added incentive for investors. The company has also improved its debtor days, streamlining its financial operations from 46.0 to 33.5 days.

Disclaimer: This article is for informational purposes only and not investment advice.