Bosch Ltd, the Indian unit of German automotive supplier Robert Bosch GmbH, posted a net profit of Rs 518 crore for the December quarter, up 62.4 per cent from a year ago.
The total revenue from operations for the December quarter was up nearly 15 per cent to Rs 4,205 crore, driven by a surge in demand in the overall automotive market, mainly in passenger cars and the heavy commercial vehicle (HCV) segment.
'Increased demand for vehicles has resulted in robust growth for Bosch Ltd this quarter. With a sustained focus on localisation in the mobility space and beyond, we are optimistic about the future and committed to delivering technologies and solutions that elevate the customer experience,' said Guruprasad Mudlapur, president of the Bosch Group, India, and managing director, Bosch Ltd.
Overall product sales of the automotive segment have increased by 16.8 per cent compared to the same quarter of the previous year. The Powertrain Solutions business, which constitutes more than 73 per cent of the overall automotive product sales, grew 20.4 per cent over the same quarter of the previous year, higher than the overall automotive market growth driven mainly by the passenger car segment due to an increase in content per vehicle.
The two-wheeler business grew 7.1 per cent compared to the same quarter last year, on account of easing semiconductor supply bottlenecks and additional volume demands due to new product launches by original equipment manufacturers (OEMs) in the current quarter.
The Beyond Mobility business recorded a 32.5 per cent increase in net sales over the same quarter of the previous financial year, driven by continued growth in the consumer goods product segment.
'We strongly believe that the mobility sector will be integral to India’s development. Our focus on evolving technologies in the mobility sector has put Bosch Ltd in a very good position in India. We anticipate an exciting future with a strategic emphasis on clean mobility, alternate powertrains, and connected mobility solutions,' added Mudlapur.
In a post-earnings interview with Business Standard, Mudlapur said there will be global structural re-adjustments in headcount and costs as there is a faster movement towards electrification and new technologies. He clarified that the restructuring is relevant only in Western markets and not in India.
On hiring, Mudlapur said while it may be a little muted, Bosch will continue to hire. 'In critical areas of R&D, we will continue to hire. For new technology areas like hydrogen and electrification, we will continue to hire... we will also continue to increase our competence in manufacturing, so we will continue to hire there as well. Hiring will be segment-specific for us and based on demand,' he said.
On market competitiveness, Mudlapur said, 'To maintain competitiveness, one of the key factors we have always looked into is how we will have the highest level of localisation content. This is something we have been very watchful of for a long time and we continue the journey of localisation at all times. This keeps us competitive in the market because we can manufacture at scale and offer the best price to the Indian OEMs… We also continuously look into our structures and continue to invest in our future-core business.'
The company has also declared a special payout in the form of an interim dividend of Rs 205 per equity share of Rs 10 each.
Post-earnings, shares of Bosch were up 5.16 per cent to close at Rs 26,600.80 on the BSE.