Bosch Ltd reports 19.2% drop in Q4 net

Launches energy and building solutions business in India

Auto components major Bosch Limited today reported 19.2% decline in net profit at Rs 139 crore for the fourth quarter ended December 31, 2013 compared to Rs 172 crore in the corresponding quarter of 2012. Net sales and income from operations for the quarter was flat at Rs 2,062 crore compared to Rs 2,061 crore in the same quarter of previous year. The operating profit before other income, finance costs and exceptional items stood at Rs 89.26 crore as against Rs 137 crore, showing adecline of 34.8% year on year.

"The prolonged slowdown of the automotive industry in 2013 coupled with weak consumer demand has impacted the overall industry as well as our growth. Our non-automotive business has been doing very well with its share increasing steadily as we continue to expand our operations in this sphere," said Steffen Berns, managing director, Bosch Limited.

For the full year ended December 2013, Bosch reported 7.6% decline in net profit at Rs 885 crore. Its net sales and income from operations has registered a growth of 1.4% to Rs 8,641 crore for the year.

"Our cumulative measures on cost control throughout this year helped us to limit the decline in profitability despite the unutilizedcapacity," Berns said. Compared to the automotive market, which declined by 3% on the production volume in 2013 (excluding 2-wheeler segment), the automotive division of Bosch registered a marginal decline of 0.7%. Diesel systems division was affected by the insistent decline in the domestic sales of commercial vehicles and passenger cars. However, the division retained its market share despite this extended slump,while the division of gasoline systems grew moderately.

The non-automotive business grew by over 19%, reflecting the company's efforts in this business area. Power tools and packaging technology division registered double digit growth for the year 2013. Bosch also announced the launch of Bosch Energy and Building Solutions (BEBS) business division in India.

Located in Bangalore, it is the first office in Asia Pacific and will be responsible for the West Asia and Asia region, Berns said.The new division will focus on energy generation and efficiency. Under this division, the company will manufacture solar waterheaters in Bangalore and import industrial boilers from Germany and market in India. With this new division, Bosch has become a turnkey solution provider for wide-ranging energy solutions in India, Berns added...Ends