Bosch posts 5.2 percent growth in second quarter

Automotive and industrial products major Bosch posted a modest growth of 5.2 percent year-on-year (YoY) in net sales while net profit grew marginally 1.7 percent YoY during second quarter (April-June) of 2013 calendar year, the company said Tuesday.

"Revenue from net sales and income from operations increased to Rs.2,269 crore and net profit to Rs.252 crore in second quarter. Profit before tax, however, increased seven percent YoY to Rs.366 crore," the city-based Germany subsidiary said in a statement here.

Admitting that growth was mainly from non-automotive segment, Bosch managing director Steffen Berns said the overall weak market conditions had impacted the company's business operations in the Indian sub-continent.

"Though the automotive market benefited from increase in tractor and three-wheeler segments, overall remained weak due to a decline in passenger cars and heavy commercial vehicles," Berns said.

Exports, however, increased 14 percent YoY during the quarter (Q2) under review.

"Our focus on expanding and developing the industrial product portfolio resulted in double-digit growth in the non-automotive business. Exports have seen a positive trend in the quarter," Berns pointed out.

For the first half year (January-June) of 2013, net sales and income from operations were flat at 0.8 percent YoY to Rs.4,460 crore.

"Overall, we anticipate moderate growth for the next two quarters compared to the weak last half of 2012," Berns noted.

The sharp rupee depreciation also impacted the company's bottomline during the quarter.

"Facing the difficult market environment, we are taking steps to improve our operational efficiency and will continue to invest for a sustained long-term growth. The overall business environment will remain challenging in the second half of this year," Berns added.