One of India’s auto component manufacturers, Bharat Seats, reported a strong Q4 FY24 performance, with both top-line and bottom-line growth. The company’s net profit rose 42.5 percent year-on-year to ₹11.4 crore compared to ₹8 crore in the same period last year. This jump was backed by higher order volumes and operational scale across its client base in the passenger vehicle segment.
Bharat Seats posted a revenue of ₹393 crore for the quarter, up 41.4 percent from ₹278 crore in Q4 FY23. The robust growth reflects continued demand from automotive OEMs. The company’s EBITDA increased to ₹23 crore from ₹17 crore, marking a 34 percent rise, although the EBITDA margin slightly declined to 5.8 percent from 6.1 percent. This indicates some pressure from rising input costs, though overall performance remained solid.
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The stock of Bharat Seats hit a 20 percent upper circuit following the announcement, closing at ₹90.6 with a market capitalization of ₹569 crore. It currently trades at a price-to-earnings ratio of 19.4, offering reasonable valuations compared to the industry average. Bharat Seats maintains a return on equity of 15.9 percent and return on capital employed of 15.3 percent, both indicating strong capital efficiency.
Over the last three years, Bharat Seats has delivered compounded profit growth of 76 percent and sales growth of nearly 25 percent. While the company reported negative free cash flow of ₹16.1 crore this year, this was primarily due to reinvestment into capacity expansion. The three-year cumulative free cash flow stands at ₹-32.3 crore, reflecting a phase of active capital deployment.
The company’s price-to-book ratio is 3.26, with a book value per share of ₹27.9. Dividend yield for Bharat Seats stands at 0.88 percent. Despite relatively modest market cap, the company has delivered a 31 percent stock CAGR over the last three years, although it remained flat over the past 12 months.
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Promoter holding in Bharat Seats remains consistent at 74.66 percent. Public shareholding stands at 25.22 percent, with DII holding remaining low at 0.11 percent, indicating high promoter confidence and concentrated retail interest.
Bharat Seats continues to benefit from rising auto industry volumes and its deep integration with leading OEMs. With strong growth, efficient operations, and increasing investor attention, the company is steadily emerging as a notable mid-cap opportunity in the auto ancillary space.
Disclaimer
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Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
