Bosch Registers 6.8% Growth From Operations During Second Quarter
Bosch Ltd’s Mobility Solutions businesses grew by 8.8 per cent and outperformed the automotive market which grew by 6.6 per cent (excluding two-wheelers) in this period
Indian automotive components supplier Bosch Ltd has posted income from operations of Rs 2,812 crore in Quarter 2 of FY 2017-18, registering 6.8 per cent increase over the same period of the previous year on a comparable basis.
The operating profit marginally declined by 1.2 per cent despite higher material cost due to change in product mix consequent to change in emission norms to BS-IV from April 2017.
In this reporting period, Profit after Tax (PAT) stood at Rs 353 crore or 12.6 per cent of income from operations,
“Earlier this year, the central government passed the mandate for all vehicles to changeover from BS-III emission norms to BS-IV emission standards. Bosch Ltd was able to offer its customers the required technology by ramping up its production and outperformed the growth of the Indian automotive sector,” stated Soumitra Bhattacharya, managing director, Bosch Ltd, and president Bosch Group in India, while announcing the results for the quarter.
“Looking forward, the company is well prepared to offer customers an array of full line solutions, as the nation transitions from BS-IV to BS-VI emission norms by 2020. Bosch Ltd is confident and committed to offer its support during this phase of movement,” Bhattacharya continued.
Overall, Bosch Ltd’s Mobility Solutions businesses grew by 8.8 per cent and outperformed the automotive market which grew by 6.6 per cent (excluding two-wheelers) in this period.
Key performing divisions were the Gasoline Systems division registering a growth of 30.8 per cent. The Diesel Systems business division registered a similarly significant growth of 27 per cent supported by the local automotive market growth of 6.6 per cent and a double-digit growth in commercial vehicles segment and tractors, supported by a good monsoon. The Automotive Aftermarket division witnessed a decline of 8.6 per cent due to GST roll out and post stabilization issues.
The company’s business beyond mobility sector registered an overall growth of 6.7 per cent compared to the previous quarter. This was attributed to good business in Security Technology and Energy & Building Solutions divisions. The Thermotechnology division also executed higher export sales orders.
“The current fiscal year holds many promises. With a progressive government at the center we look forward to more reforms. By taking a consolidated approach to customer service and delivering holistic integrated services, Bosch Ltd is certain of continuing on the path of its past growth trajectory,” Bhattacharya commented.