EV shift, margins near-term headwinds for Bosch

Lower-than-expected revenues from BS-IV transition and higher commodity costs have led to earnings cuts

The Bosch stock has shed 10 per cent over the last fortnight on muted September quarter results, and lower-than-expected revenues from the transition to BS-IV emission norms. Analysts say that BS-IV average selling prices were lower than originally estimated in the September quarter, which led to the steep underperformance on the top line front. Revenues grew just under 7 per cent year-on-year (y-o-y) to Rs 2,811 crore, while analysts had estimated it to grow over 31 per cent to Rs 3,421 crore.

What made matters worse was lower revenue in the replacement market segment (20 per cent of revenues), which