Bosch reports subdued Q1 results as slowdown takes a toll on revenues

Transition to BSVI, electrification challenge amidst lower volume offtake to impact growth outlook

The largest auto component maker by market capitalization, Bosch reported a subdued April-June quarter results, which were below Street expectations. Revenues, 85 per cent of which comes from the automotive segment, were down 13.5 per cent over the year-ago quarter. Higher commodity and foreign exchange costs on a weak revenue base impacted operating profit, which fell by 23 per cent, while margins were down 141 basis points over the March quarter to 17.4 per cent. 

The management believes that the slowdown will impact auto sector growth in 2019-20 and there might be a spillover of the same in 2020-21.  The