Bosch India posts 10.8% growth in profit for Q2, FY2017

Bosch Ltd has posted a net sales and income from operations of Rs 423 crore in the second quarter of financial year 2016-17 (Q2, FY2016-17), registering an increase of 10.8 percent over the same period of the previous year. The profit improved due to higher sales volume, improved productivity and treasury income.

The technology supplier posted gross sales and income from operations of Rs 2,738 crore in Q2, FY2016-17, registering a 7.7 percent increase year-on-year (YoY). In the reporting quarter, the Profit Before Tax (PBT) from continuing operations stood at Rs 590 crore or 21.6 percent of sales, an increase of 9.6 percent.

Commenting on the results, Dr Steffen Berns, managing director of Bosch Limited and president of Bosch Group in India said, “Improved market sentiments, normal monsoon and the festive season have led to a strong quarter for the automotive market. For the quarter, Bosch Limited has registered a healthy growth in line with the market. We continue to focus on operational efficiencies and productivity improvements. In addition we have continued augmenting our engineering capacities and competencies to work on the BS6 projects. We feel well prepared for the future emission legislation with our products, experience and testing infrastructure facilities.”

Snapshot of business divisions’ performance

Overall, the company’s Mobility Solutions businesses grew by 6.7 percent in Q2, FY2016-17. The main contribution was from Gasoline Systems which posted a strong double-digit growth. The business divisions of the sectors beyond mobility performed strongly and grew by 15.9 percent.

“The company has been focusing on offering integrated cross divisional solutions in the business sectors beyond mobility. The renewed focus to improve India’s infrastructure segment has helped business units such as Power Tools and Security System to grow strongly,” Dr Berns added.

Changes in the Board of management

Soumitra Bhattacharya, currently the joint managing director of Bosch Limited, has been appointed as the managing director with effect from January 1, 2017.   Bhattacharya has worked in various capacities at Bosch Limited and abroad for the Bosch Group over the past 22 years. He will succeed Dr Steffen Berns who completes his four-year term as the managing director on December 31, 2016. Dr Berns will return to Germany and take up a new position within the Bosch Group as the president of the Bosch Car Multimedia Division. Dr Andreas Wolf, currently the executive vice president responsible for manufacturing and quality has been appointed as the Joint Managing Director of Bosch Limited.

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