Bosch Ltd’s net profit down 15 percent in 2012

Bangalore, February 28, 2013: Bosch Ltd has achieved a growth of 6.4 percent at Rs 8,511 crore in net sales and income from operations for the year ending 2012.

Announcing the results in Bangalore, Steffen Berns, who recently took over as managing director, said the growth of the company was below the previous year’s figure because of the weak automotive market and global economic slowdown.

The net profit stood at Rs 958 crore or 11.3 percent on sales as against Rs 1,123 crore in 2011, down 15 percent. Exports declined by 9.1 percent year-on-year to Rs 940 crore. Berns said the company will continue to invest and elaborating on that, he said, “One key part is the technology change in diesel fuel injection equipment that goes into the common-rail system. The second part is our plan to move our Adugodi plant in the heart of Bangalore to Bidadi on the outskirts of Bangalore. The Adugodi premises will be used to expand the Bosch R&D centre.”

He added, “The economic downtrend continued into the fourth quarter of 2012. The overall automotive production increased marginally and the heavy/ medium commercial vehicle and tractor segments which contribute significantly to our business, declined sharply. Exports declined due to the euro crisis.”

While the diesel systems division stagnated mainly due to exports and weak markets in heavy commercial vehicle and tractor segments, he said the automotive aftermarket division grew 10 percent with its strong network expansion. Overall, automotive sales grew at twice the rate of Indian automotive production (excluding two-wheelers).

Photograph (L-R): Soumitra Bhattacharya, joint MD, Bosch Ltd, Steffen Berns, MD, Bosch Ltd and Karthik S, vice-president, Corporate Finance, Accounts & Controlling, Bosch Ltd.

JAISHANKAR JAYARAMIAH