Bosch records 10.8 percent growth in Q1 2014

Bosch Ltd, the Bangalore-based automotive supplier, posted net sales and income from operations of Rs 2,431 crore, thus recording a 10.8 percent increase over the year-earlier period. Domestic sales increased by 8.6 percent and exports grew 35 percent over Q1 2013.

Profit Before Tax (PBT) at Rs 452 crore was up 16.9 percent while the profit after tax (PAT) stood at Rs 326 crore, an increase of 25.5 percent as compared to Q1 2013.

Dr. Steffen Berns, managing director, Bosch Ltd, said, “The positive results for the quarter are a direct reflection of the good performance of our diesel systems and gasoline systems divisions. Diesel systems benefitted from the strong tractor production and higher sales of vehicles fitted with Bosch equipment. Although overall results are positive, a continued weak consumer sentiment has limited our growth in the trading divisions. For the remaining quarters of 2014, it will be challenging to continue on this growth path.”

Berns added, “Operating profits, which increased by 4.3 percent, continued to be under severe pressure, due to rupee depreciation, inflation and material cost increases. Our efforts to improve operational efficiency have yielded positive results and are being continued. The overall PBT has been boosted by increased treasury income, which includes a one-time capital gain on sale of financial investments.  We continue to prepare for mid-term expansion with cautious optimism and hope for the much-awaited revival of the economy and implementation of pending policies after the elections.”

The overall automotive business of Bosch grew by 12.6 percent. The Diesel Systems division was particularly strong mainly due to the strong local demand and additional exports of distributor pumps. The gasoline systems has gathered momentum in the first quarter, and the starter motors and generators division continued to grow steadily.

The non-auto businesses overall grew by only 4.9 percent, mainly due to tight liquidity in the market for trading business.

Image: Bosch’s common-rail tech at work.