Bharat Seats Ltd, a leading automotive seating systems manufacturer, has announced a 1:1 bonus share issue. This means shareholders will receive one additional share for every share they own. The record date for this bonus issue is decided to be 20th December after receiving shareholder and regulatory approvals.
Bonus Issue Details
On November 5, 2024, the Board of Directors approved the bonus share issue, marking Bharat Seats’ first bonus issue in 17 years—the last one was in 2007. This move shows the company’s commitment to rewarding investors and improving stock liquidity.
About Bharat Seats Ltd
Bharat Seats Ltd is a joint venture between Maruti Suzuki India Ltd, Suzuki Motor Corporation Japan, and Rohit Relan & Associates. The company produces seating systems and interior components for two-wheelers, four-wheelers, and Indian Railways.
Key Products Include:
- Seating Systems
- NVH (Noise, Vibration, and Harshness) Components
- Carpets and Body Sealing Parts
Bharat Seats is certified with IATF 16949, ISO 14001, and OHSAS 18001, reflecting its focus on quality and environmental sustainability.
Financial Highlights
Bharat Seats has reported strong financial results, reflecting its solid operations:
Q2FY25 (Year-over-Year Comparison):
- Revenue: ₹290.67 crore (up from ₹285.98 crore)
- Operating Profit: ₹17.66 crore (margin: 6.08%)
- Net Profit: ₹7.10 crore (up from ₹6.79 crore)
FY24 (Annual Performance):
- Revenue: ₹1,067 crore
- Operating Profit: ₹61 crore
- Net Profit: ₹25 crore (up from ₹22 crore in FY23)
Professional Management and Strategic Significance
Promoters play a key role in the company’s stability and strategy. Bharat Seats’ promoters include Maruti Suzuki India Ltd, Suzuki Motor Corporation Japan, and NDR Auto Components.
As of September 2024:
- Maruti Suzuki and Suzuki Motor Corporation each hold a 14.81% stake.
- NDR Auto Components owns 28.66%.
These partnerships bring technological expertise, financial strength, and operational synergies, boosting Bharat Seats’ competitive edge.
Bharat Seats’ decision to issue bonus shares underscores its commitment to enhancing shareholder value. With strategic partnerships, innovative products, and strong financial performance, the company is well-positioned for future growth in the automotive and rail transport sectors.
Disclaimer: This article is for informational purposes only and does not provide investment advice.
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