Bosch Q1 net up 25.3% to Rs 326 crore

Bosch Limited, a supplier of technology and services to automotive OEMs (original equipment manufacturers), on Friday reported 25.3 per cent rise in net profit at Rs 326 crore for the first quarter ended March 31, 2014 compared to Rs 260 crore in the same period last year. (Bosch operates on a calendar year basis).

Strong growth in tractor sales and diesel systems helped the company show better results during the first quarter.

Its net sales and income from operations went up 10.8 per cent to Rs 2,431 crore compared to Rs 2,194 crore in the first quarter of 2013. Domestic sales increased by 8.6 per cent and exports grew by 35 per cent over Q1 2013.

The operating profit stood at Rs 311 crore as against Rs 298 crore, showing a growth of 4.3 per cent over the previous year.

?The positive results for the quarter are a direct reflection of the good performance of our Diesel Systems and Gasoline Systems divisions. Diesel Systems benefitted from the strong tractor production and higher sales of vehicles fitted with Bosch equipments. Although overall results are positive, a continued weak consumer sentiment has limited our growth in the trading divisions. For the remaining quarters of 2014, it will be challenging to continue on this growth path,? said Steffen Berns, Managing Director, Bosch Limited.

The overall automotive business of Bosch Limited grew by 12.6 per cent. Diesel Systems division was particularly strong mainly due to the strong local demand and additional exports of distributor pumps. The Gasoline Systems also picked up momentum in the first quarter, and Starter Motors and Generators Division continued to grow steadily.

The Non-Automotive businesses overall grew by only 4.9 per cent, mainly due to tight liquidity in the market for trading business.

?Operating profits, which increased by 4.3 per cent only, continue to be under severe pressure, due to rupee depreciation, inflation and material cost increase. Our efforts to improve operational efficiency have yielded positive results and are being continued. The overall profit (PBT) has been boosted by increased treasury income, which includes a one-time capital gain on sale of financial investments,? Berns said.

The company, however, continues to prepare for mid-term expansion with cautious optimism and hope for the much-awaited revival of the economy and implementation of pending policies post elections, he added.

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