Bosch slumps after reporting Q1 net loss of Rs 121 cr

Bosch declined 3.06% to Rs 13,174.80 after the auto parts maker reported a consolidated net loss of Rs 120.83 crore in Q1 June 2020 compared with net profit of Rs 281.56 crore posted in Q1 June 2019.

Consolidated revenue from operations stood at Rs 991.54 crore in Q1 June 2020, declining 64% from Rs 2,755.44 crore posted in the same period last year. The company clarified that the COVID-19 pandemic adversely impacted sales in all segments during the quarter.

The company posted a pre-tax loss of Rs 3.72 crore in Q1 June 2020 as against pre-tax profit of Rs 506.82 crore in Q1 June 2019. The result was announced during market hours today, 11 August 2020.

The company reported an additional provision of Rs 197 crores in Q1 June 2020 due to its investment in restructuring, reskilling and other transformational projects.

Commenting on company's performance, Soumitra Bhattacharya, MD, Bosch said, "As anticipated, the financial year 2020-21 began on an extremely challenging note. The Indian economy is expected to witness sharp contraction, with GDP projected to be between minus 4% and minus 6% in the current fiscal year. Multiple lockdowns in several states are adversely affecting the supply chain. With the ripple effect of this continuing to be felt in the coming years, we now have to do all we can to counter the business situation while exhibiting utmost care for our associates. The focus for the upcoming quarters will remain on the agriculture sector, particularly on tractor demand. However, the auto sector as a whole will take four to five years to return to the levels of 2018-19."

Bosch is a supplier of technology and services in the areas of mobility solutions, industrial technology, consumer goods, and energy and building technology.

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