Bosch Ltd net profit declines 27% to Rs 350.5 crore in March quarter

Auto components major Bosch Ltd on Thursday reported a 27.28 per cent decline in consolidated net profit at Rs 350.5 crore in the fourth quarter ended March 2022 dragged down by higher expenses.

The company had posted a consolidated net profit of Rs 482 crore in the same period previous fiscal, Bosch Ltd said in a regulatory filing.

Consolidated revenue from operations during the period under review stood at Rs 3,311 crore as against Rs 3,215.9 crore in the year-ago period, it added.

Total expenses in the fourth quarter were higher at Rs 2,972.2 crore as compared to Rs 2,693 crore a year ago, it added.

For the fiscal ended March 31, 2022, consolidated net profit was at Rs 1,217 crore. It stood at Rs 480.7 crore in the previous fiscal, the company said.

Bosch said its consolidated revenue from operations in FY22 was at Rs 11,781.6 crore in comparison to Rs 9,716.2 crore in FY21.

The company said its board of directors recommended a dividend of Rs 110 per equity share of Rs 10 each. In addition, it has recommended a dividend of Rs 100 per share of Rs 10 each to commemorate 100 years of Bosch in India in 2022, aggregating to a final dividend of Rs 210 per equity share for the financial year 2021-22.

Bosch Ltd Managing Director and Bosch Group, India President Soumitra Bhattacharya said 2022 marks 100 years of Bosch in India, and "this significant landmark and heritage was complemented by a positive revenue growth curve throughout FY 2021-22".

"Amid the multifaceted challenges faced by the automotive industry, Bosch's mobility business demonstrated resilience and recorded a faster-than-market recovery rate on a par with the all-time high posted in 2018-19," he said.

Bhattacharya said the company will continue to capitalise inorganic opportunities to expand its digital mobility business by leveraging its mobility cloud platform and mobility marketplace for new-age mobility players while actively growing the company's acquisitions and mergers pipeline.

While appreciating various initiatives like PLI and scrappage policy implemented by the Centre towards supporting the auto industry, he, however, said it is vital to create a clear roadmap to support the industry to further invest and create a stable environment.

"While these policies have provided an impetus for the auto sector to accelerate growth, the constant changes in regulations have caused challenges for the industry in working towards achieving the set targets," he said.

It is imperative for the government and the mobility ecosystem to align their vision and insights, and take steps in the direction of streamlining the auto industry's future, Bhattacharya asserted.

On the road ahead, he said Bosch Ltd is investing in hydrogen-based technologies both for mobility and stationary applications.

"We are in discussion with customers and partners in India to bring advanced hydrogen-based powertrain and fuel-cell technologies to the market. With electromobility set to go mainstream, Bosch has taken the first step towards introducing low-carbon transportation and aiding the construction of a sustainable and carbon-neutral mobility ecosystem in India," he said.