1:1 Bonus Issue Announced by Seating Systems Provider for Indian Railways and Maruti Suzuki; Trading Volumes Surge Over 4.30 Times on BSE

Maruti Suzuki India-backed seats manufacturer announced bonus issue along with quarterly results.

This Small-Cap seat manufacturing company, serving both the automotive sector and Indian Railways, announced a bonus share for its shareholders today.

Bonus Share

At its meeting held on November 5, 2024, the Board of Directors of Bharat Seats Ltd approved the issuance of 1 (one) bonus share for every 1 (one) equity share held by its shareholders as of the designated record date. This bonus issue is subject to shareholder approval, along with any other necessary statutory and regulatory clearances.

Financial Performance

Furthermore, Bharat Seats Ltd has also announced its performance and as per the Quarterly Results in Q2FY25, Bharat Seats Ltd recorded a revenue of Rs 290.67 crore compared to Rs 285.98 crore. The operating profit for the period stood at Rs 17.66 crore with an operating profit margin of 6.08 per cent. The net profit reported by the company was Rs 7.10 crore compared to a profit of Rs 6.79 crore last year same quarter. Looking at the annual performance, the company generated a revenue of Rs 1067 crore in FY24. The operating profit for FY24 was Rs 61 crore with a net profit of Rs 25 crore compared to a net profit of Rs 22 crore in FY23.

Business Overview

Bharat Seats Ltd manufactures complete seating systems and interior components for the automotive and surface transport sectors. As a joint venture between Suzuki Motor Corporation Japan, Maruti Suzuki India, Rohit Relan, and Associates, BSL specializes in producing comprehensive seating systems and auto components. The company is certified with IATF 16949, ISO 14001, and OHSAS 18001 standards and manufactures seating systems, carpets, NVH (Noise, Vibration, and Harshness) components, and body sealing parts for both four-wheelers and two-wheelers. Additionally, it supplies seating systems for Indian Railways.

Today, the shares of Bharat Seats Ltd closed at around Rs 214.89 per share. The company’s current market capitalization stands at Rs 675 crore. The company’s stocks have delivered an impressive return of over 60 per cent in the past year.

Investors must keep this stock on their radar.

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