The shares of the seating system manufacturer hit the 2 percent upper circuit after approving capex worth Rs. 99 cr along with the Q2 FY24 results.
With a market capitalization of Rs. 413 cr, the shares of Bharat Seats Ltd hit the 2 percent upper circuit at Rs. 134.20 within a few minutes of the opening bell.
In an exchange filing the company announced that the board has approved capital expenditure worth Rs. 99 cr along with the Q2 FY24 results.
Furthermore, the company mentioned that this capex will be used for relocation of an existing program to Maruti’s supplier park in Haryana from Manesar Plant, with a capex of approx. Rs.52.92 cr. The expected date of commencement of supply from the Kharkhauda Plant is March 2025
The company has allocated a capex of approx. Rs.10.83cr for extension of existing building at Bhorakalan for Two-wheeler assembly for Suzuki Motor Cycle India Private Limited and new programs of Maruti Suzuki India Limited.
Moreover, the company is setting up additional production facilities at the Company’s plant in Bhorakalan, Gurugram, Haryana for a Two-wheeler wheel assembly project for Suzuki Motor Cycle India Private Limited, with a capex of approx. Rs.3.80 cr. The expected date of commencement of supply is August 2024
The remaining capex of approx.Rs.31.63 cr is towards new programs of Maruti Suzuki India Limited and Suzuki Motor Cycle India Private Limited in the Ordinary course of business.
In addition to the above, the company also announced September 2023 quarter results. The revenue of the company increased by around 12 percent from Rs. 252.72 cr during Q1 FY24 quarter to Rs. 285.96 cr in Q2 FY24. In addition to this net profit increased from Rs. 4.67 cr to Rs. 6.83 cr keeping the timeframe same.
Looking at the important financial ratios, the return on equity (RoE) was at 15.76 percent during FY22-23 and the return on capital employed (RoCE) was reported at 17.95 percent during the same period.
According to the latest shareholding pattern, Promoters have 74.59 percent of the company’s stake, the Public has 25.30 percent of the holding and the remaining 0.11 percent is with DIIs.
Bharat Seats Ltd has expertise in manufacturing seating systems, carpets, and body sealing parts for two and four-wheelers and they also provide services for Indian Railways. Currently, the company has 5 facilities across India.
Written By Vaibhav Patil
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