Technology major Bosch has reported a 12.8 percent year-on-year growth in Q2 FY24 operating revenues to Rs 4,134 crore, attributed to strong growth in the automobile sector, driven by demand in the heavy-commercial and passenger-vehicle segments.
The company’s Profit Before Tax (excluding exceptional items) stood at Rs 532 crore, which is 12.9% of total revenue from operations, an increase of 9.2% over the same quarter of previous year. The Profit Before Tax (after exceptional items) was pegged at Rs 1,317 crore, which is 31.9% of total revenue from operations, an increase of 170.4% over the same quarter of previous year.
The company clarified that exceptional items pertain to the gain on sale of the company’s Mobility Solutions business in the current quarter. Bosch reorganised its Mobility Solutions business into a business sector with profit and loss responsibility earlier this year.
The envisaged transaction is designed to steer the global platform and solutions business through a neutral e-commerce marketplace. This will ensure flexibility and ease of global operations. The Profit After Tax (PAT), including exceptional items, was pegged at Rs 999 crore - 24.2% of revenue from operations.
According to Guruprasad Mudlapur, MD, Bosch, and President, Bosch Group India, “In today’s rapidly changing market conditions, Bosch in India remains adaptable and thus well poised to maintain a robust growth and a healthy EBIT in the upcoming quarter as well.”
Q2 performance overview
Bosch’s Powertrain Solutions business, which constitutes more than 63% of its total net sales, showed a growth of 12.3% in Q2 FY24, over same quarter of previous financial year, higher than the overall automotive market growth due to increase in content-per-vehicle mainly Exhaust Gas Treatment (EGT) components. This has resulted in an increase of 11.7% in the product sales of the automotive segment.
The two-wheeler business also registered a growth of 18.6% compared to the same quarter last year due to the easing of semiconductor supplies as compared to the same quarter of previous year. The company’s ‘Beyond Mobility’ business recorded a 9.9% increase in net sales over the same quarter of the previous financial year, driven by continued growth in the consumer products segment.
“Over the next decade, the mobility sector in India will transform fundamentally. India is already the third largest auto market worldwide and we are optimistic about a promising future where we move towards electrification, cleaner fuel options, green hydrogen, and safer vehicles. Demonstrating our agility to embrace the change, Bosch is committed to take centre stage and emerge as the ultimate system solution provider for new-age technologies in the mobility space,” added Mudlapur.