Bosch drops in volatile trade after declaring Q3 result

Bosch lost 4.28% to Rs 16,250 at 14:45 IST on BSE after the company declared Q3 December 2015 result during market hours today, 5 February 2016.

Meanwhile, the BSE Sensex was up 225.81 points, or 0.93%, to 24,564.24

On BSE, so far 15,523 shares were traded in the counter, compared with an average volume of 1,890 shares in the past one quarter. The stock dropped as much as 4.87% at the day's low of Rs 16,150 in intraday trade so far, which is also a 52-week low for the counter. The stock rose as much as 3.93% at the day's high of Rs 17,646 so far during the day. The stock hit a record high of Rs 27,989.25 on 20 March 2015. The stock had underperformed the market over the past one month till 4 February 2016, falling 9.88% compared with 5.01% decline in the Sensex. The scrip also underperformed the market in past one quarter, falling 16.18% as against Sensex's 8.34% fall.

The large-cap company has an equity capital of Rs 31.40 crore. Face value per share is Rs 10.

Bosch's net profit rose 99.12% to Rs 220.77 crore on 12.7% growth in total income to Rs 2786.08 crore in Q3 December 2015 over Q3 December 2014.

Meanwhile, Bosch's board of directors at its meeting held today, 5 February 2016, approved in principle the transfer by way of sale, of the Starter Motors and Generators business of the company (SG-IN) to a subsidiary of Robert Bosch Starter Motors Generators Holding GmbH. The board approved the sale of SG-IN business as a going concern on a slump sale basis for a consideration of Rs 486.2 crore. In case the global SG transaction gets executed within the next 18 months and results in a higher implicit price for SG-IN, there will be an additional contingent consideration payable to Bosch, the company said. The transfer of SG-IN is in line with global alignment and will allow a stronger focus on other core areas like diesel and gasoline systems for sustainable growth, Bosch said. The transfer of SG business may enable it to increase the profitability of remaining business, the company said. SG-IN being a commodity business faces extreme profitability pressures. The SG-IN business constitutes approximately 10% of the total business of Bosch, it added.

In India, Bosch is a leading supplier of technology and services in the areas of automotive and industrial technology, consumer goods and building technology. Additionally, Bosch also has in India, the largest development centre, outside Germany, for end-to-end engineering and technology solutions. Bosch is the flagship company of the Bosch Group.

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