Bengaluru – Bosch Limited, a leading supplier of technology and services, posted a total revenue from operations of INR 11,690 crores (1.55 billion euros) in the past 12 months, registering 12 percent increase over the same period of the previous year on a comparable basis. “Bosch Limited’s domestic sales have been growing steadily as India’s automobile sector shows promising growth in the future,” said Mr. Soumitra Bhattacharya, Managing Director, Bosch Ltd.
The Profit Before Tax (PBT) before exceptional items stood at INR 2,134 crores, or 18.3 percent of total revenue from operations, a 1.9 percent increase over the same period of the previous year on account of higher sales volume, which is offset by product mix change.
The Government of India has increased the maximum amount of gratuity payable to an employee under the Payment of Gratuity Act, 1972 from INR 10 lakhs to INR 20 lakhs. The company has provided for an additional amount towards one time past service cost, which has been disclosed as an exceptional item for the quarter and financial year ending March 31, 2018.
Profit before tax after exceptional item stood at 2,041 crores, which show a decline of 2.6 percent over previous year.
The Net Profit after Tax (PAT) from continuing operations before exceptional item is 1,464 crores, an increase of 1.4 percent over the previous year. PAT from continuing operations after exceptional item has decreased by 5.1 percent over the previous year. Previous year profit after tax includes profit from sale of its Starter Motors and Generators Business, which was executed as on August 1, 2016.
Positive business development across key sectors in 2017-18
Bosch Limited’s Mobility Solutions business sector increased by 15 percent in 2017-18. Domestic sales increased by 14.8 percent, outperforming the domestic automotive market, which posted a growth of 10.8 percent in the same period. Export sales increased by 16.8 percent. Within the Mobility Solutions business, the Powertrain Solutions business division registered a strong double-digit growth of 19.4 percent.
Even though the divisions Building Technology, Packaging Technology as well as Thermotechnology, posted a double-digit growth respectively, the overall growth of business sectors beyond Mobility Solutions posted a marginal growth of 0.3 percent, offset by lower turnover in the Energy business due to volatility in the market post GST implementation.
Considering the company’s performance, the Board of Directors recommended a dividend of INR 100 per share for this twelve-month period.
Results for the quarter ended March 2018
The company posted total revenue from operations of INR 3,158 crores, an increase of 22.7 percent over the corresponding quarter of 2017. Profit before Tax (PBT) for the current quarter stood at INR 724 crores before exceptional items, a 9.2 percent increase compared to the previous quarter. The increase in profit is mainly caused by higher sales volume and increased operational efficiencies offset by higher material cost due to product mix change. Considering the exceptional item relating to gratuity, PBT declined by 4.9 percent. While the Profit after Tax (PAT) has increased by 19.7 percent before exceptional item, the PAT after the exceptional item has marginally reduced by 1.5 percent over the previous quarter.
The Mobility Solutions sector posted a healthy growth of 23.1 percent. The strong performance by the divisions Power Tools, Building Technology as well as Energy and Building Solutions has helped the business beyond Mobility Solutions to grow by 22.4 percent.
Outlook 2018-19: Strong growth under optimistic market conditions
Speaking about the outlook for the upcoming financial year, Mr. Bhattacharya commented: “The automotive industry in India accounts for 7.1 per cent of the country's gross domestic product. This is expected to increase in the future as well, as India gears up to achieve BS-VI implementation from April 2020 and adopt electromobility solutions built for Indian conditions. With such an optimistic market outlook, Bosch is confident of continuing its strong revenues in future.”
Looking beyond mobility, a major portion of Bosch’s activities focus on building effective solutions for a connected future. This includes using big data for energy compliant processes, deploying digital solutions to get power tools into the hands of more tradesmen and securing hubs of urban movement such as airports and metro stations with smart surveillance solutions, among other initiatives.
Continuous investment: Development of manufacturing locations
During the past 12 months, major investments were made towards the development of new products and at facilities of Bosch Limited in Bidadi and Nashik. Overall, the company made capital investments of around INR 460 crores in 2017-18. “India is a priority market for Bosch and the investment has been consistent. We will continue to make investments of similar nature in the current financial year,” continued Mr. Bhattacharya.
Bosch Group: Global strategy and business outlook for 2018
Bosch is aiming for further growth in 2018, despite the difficult economic climate. After achieving record results in 2017, and in light of economic and geopolitical risks, the Bosch Group expects its sales revenue to grow by 2 to 3 percent in 2018. In the first three months, the sales revenue generated by the company matched the high level of the same period of the previous year, and even increased by around 5 percent when adjusted for exchange-rate effects. “Our company is unequaled when it comes to combining comprehensive connectivity expertise with broad industry and product know-how. This is the Bosch Group’s unique selling proposition,” said the Bosch CEO Dr. Volkmar Denner, speaking at the annual press conference in Renningen. Denner sees improving the quality of life and contributing to eco- and climate-friendliness at the top of Bosch’s agenda: “Our ‘Invented for life’ ethos is our motivation for developing the best possible technologies for environmental protection. We want to help keep people mobile, while improving air quality.” To make practically zero-emissions traffic reality, the company is making heavy investments – both in making electromobility a market success and in enhancing the combustion engine. Bosch has now achieved a breakthrough in diesel technology: with their new diesel technology, Bosch engineers have succeeded in getting NOx emissions down to one-tenth of the legally permitted limit. On average, test vehicles equipped with the enhanced technology already emit no more than 13 milligrams of NOx per kilometer, or far less than the 120 milligrams that will be permitted after 2020. “There’s a future for diesel. It will remain integral to tomorrow’s mobility solutions,” the Bosch CEO said.
In the Asia-Pacific region, Bosch recorded a hefty 13.5 percent increase in sales in 2017 to 23.6 billion euros (exchange rate adjusted 16.5 percent). Bosch now generates 30 percent of its total sales revenue in Asia Pacific compared to 28 percent in the previous year.
