Bosch fell 3.21% to Rs 14,750 after consolidated net profit fell 45.58% to Rs 228.61 crore on 26.92% decline in net sales to Rs 2,312.68 crore in Q2 September 2019 over Q2 September 2018.The revenue dropped mainly driven by continuing cyclical and structural issues adversely impacting the auto sector. The result was announced at the fag end of the trading session yesterday, 6 November 2019.
The profit after tax (PAT) from continuing operations stood at 10.7% before the impact of tax rate change on opening deferred tax asset and 4.5% after the impact of tax rate change. The profit before tax (PBT) before exceptional item from continuing operations declined 34.4% at Rs 421 crore in Q2 September 2019 as against Q2 September 2018.
The company stated that as the Indian automotive market is undergoing major changes from regulatory, technological and market factors, there are opportunities in new segments of electro mobility and mobility solutions. The firm has set up an additional provision of Rs 130 crore, disclosed as an exceptional item for the quarter ended 30 September 2019 towards various continuing transformational projects.
Commenting on the results, Soumitra Bhattacharya, the managing director of Bosch and president of the Bosch India Group, said, "The dip in the company's performance is mainly due to the downward trend in the automotive sector as a whole, which has been caused not only by sluggish demand but also by a paradigm shift in consumer behavior. To deal with this, the company has initiated a restructuring process. Wherever possible, the company wants to focus on reskilling and redeploying talented associates. Any necessary headcount adjustments will be carried out in a fair and socially acceptable manner, .and will also include early voluntary retirement schemes."
"The announcement made by Prime Minister Modi about the coexistence of combustion-engine and electric vehicles is definitely reassuring for the automotive industry. At Bosch Limited, we have been investing steadily in developing products and solutions for the mobility of the future while enhancing our combustion-engine technologies. The company is already working with vehicle makers on the electrification of the two, three, and four-wheeler segments including mobility services," he added.
Bosch operates in the manufacturing and trading of automotive products. Its segments include automotive products and others.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)