Bengaluru – Bosch Limited, a leading supplier of technology and services, posted total revenue from operations of INR 2,537 crores in Quarter 3 of FY 2019-20, registering a decline of 15.7 percent over the same period of the previous year. The industry downturn continues with cyclical and structural change and has been adversely impacting the auto sector, mainly the commercial vehicle and tractor segment. However, the total revenue from operations has increased by 9.7 percent, over its immediate previous quarter, contributed mainly from the Service and R&D income. The Profit Before Tax (PBT) before exceptional item from continuing operations stood at INR 347 crores which is a decline of 27.5 percent over the same period of previous year.
The Profit Before Tax after exceptional item stood at INR 140 crores which is 5.5 percent of total revenue from operations.
During the quarter, Bosch Limited has made an additional provision of INR 207 crores, towards various restructuring (considering the upcoming BS-VI emission standards) and transformational projects. These provisions are in line with the company’s transformation initiatives to capture the opportunities in the emerging electro mobility and mobility segment.
In accordance with the approvals received from the Board of Directors from the shareholders, Bosch Limited has executed the business transfer agreement on October 1, 2019 and transferred the business of the Packaging Technology division. Consequently, the Profit Before and After Tax of INR 95 and 71 crores respectively of this division has been disclosed separately as discontinuing operations for the quarter.
The Profit Before Tax (before EI) stood at 13.7 percent. The Profit After Tax from continuing operations before and after exceptional item stood at 10.6 percent and 4.7 percent respectively.
Total net profit after tax including discontinuing operations stood at INR 190 crores.
For the nine months period ended December 31, 2019, Bosch Limited posted a total revenue from operations of INR 7,605 crores, a decline of 18.7 percent over the same period of previous year. PBT before exceptional item for continuing operations stood at INR 1,276 crores and PBT after exceptional item stood at INR 856 crores. PAT from continuing operations stood at INR 504 crores after exceptional items. Profit after tax for the period including discontinuing operations stood at INR 569 crores.
“The entire automobile industry is in the grip of a slowdown with a major technology shift from BS-IV to BS-VI in the horizon. Together with OEMs, Bosch has been working relentlessly to meet the April 1, 2020 deadline for the implementation of BS-VI technologies. At the same time, we are continuing to invest in electrification and other mobility solutions,” said Soumitra Bhattacharya, Managing Director of Bosch Limited and President of the Bosch Group in India. He further added, “Through a technology agnostic approach, we actively support the Government’s initiatives towards the auto sector with an India first objective.”
Snapshot of business division’s performance in Quarter 3
Bosch Limited Mobility Solutions turnover decreased by 25.8 percent in Quarter 3 of FY 2019-20, mainly driven by Powertrain Solutions division affected by auto sector slowdown. Bosch’s business beyond Mobility Solutions sector posted a decline of 13.9 percent. The reduction is mainly on account of decline in business of solar energy division which is predominantly project driven.
For the nine months period ended December 31, 2019, Sales of Mobility Solutions sector decreased by 24.6 percent, whereas business beyond Mobility Solutions sector witnessed a reduction of 13.2 percent.
