Bosch skids after Q3 PAT declines 43%

Bosch slipped 1.48% to Rs 13791 after consolidated net profit declined 43.28% to Rs 190.24 crore in Q3 December 2019 (Q3 FY20) as against Rs 335.38 crore reported in Q3 December 2018 (Q3 FY19).

Net sales fell 15.66% year-on-year (YoY) to Rs 2,536.64 crore in Q3 FY20. The Profit Before Tax (PBT) fell 70.80% to Rs 139.99 crore YoY. The result was announced during market hours today, 5 February 2020.

The industry downturn continues with cyclical and structural change and has been adversely impacting the auto sector, mainly the commercial vehicle and tractor segment. However, the total revenue from operations has increased by 9.7%, over its immediate previous quarter, contributed mainly from the Service and R&D income, the company said in a statement.

During the quarter, Bosch has made an additional provision of Rs 207 crore, towards various restructuring (considering the upcoming BS-VI emission standards) and transformational projects. These provisions are n line with the company's transformation initiatives to capture the opportunities n the emerging electro mobility and mobility segment.

Commenting on company's Q3 performance, Soumitra Bhattacharya, Managing Director of Bosch and President of the Bosch Group in India said,"The entire automobile industry is in the grip of a slowdown with a major technology shift from BS-IV to BS-VI in the horizon. Together with OEMs, Bosch has been working relentlessly to meet the April 1, 2020 deadline for the implementation of BS-VI technologies. At the same time, we are continuing to invest in electrification and other mobility solutions.

Bosch operates in the manufacturing and trading of automotive products. Its segments include automotive products and others.

Powered by Capital Market - Live News