Bosch Limited, a leading supplier of technology and services, posted gross sales and income from operations of Rs 2,770 crore in the first quarter of FY 2017-18, thus registering a 3.3 per cent increase over the same period of the previous year. During the period, Profit Before Tax (PBT) stood at Rs 462 crore (16.7 per cent of sales) while Profit After Tax (PAT) was Rs 303 crore (10.9 per cent of sales), a decrease of 19.3 per cent over the same period of the previous year. Despite a sales growth of 3.3 per cent, PAT declined due to a change in the product mix. This was necessitated owing to the introduction of BS IV emission norms across India beginning April 1, 2017. Subsequently, material cost and freight cost increased. “Earlier this year, the Central Government passed the mandate for all vehicles to changeover from BS III emission norms to BS IV emission standards. Bosch was able to offer its customers the required technology by ramping up its production, inclusive of its suppliers,” stated Soumitra Bhattacharya, Managing Director, Bosch Limited, and President Bosch Group in India, while announcing the results for the quarter. “Looking forward, the company is well prepared to offer customers an array of full line solutions, as the nation transitions from BS IV to BS VI emission norms by 2020. Bosch Limited is prepared and committed to offer its support during this phase of movement,” Bhattacharya continued.
Overall, Bosch Limited’s Mobility Solutions businesses grew by 5.2 per cent and outperformed the automotive market which grew by 2.7 per cent (excluding two-wheeler) in this period. Key performing divisions were the Diesel Systems business, which registered a sales growth of 8.1 per cent. Gasoline Systems’ sales also registered a double-digit growth of 53.6 per cent. The company’s business beyond mobility sector registered an overall decline of 11.4 per cent due to lower export orders in the Packaging Technology business division, that apart customer orders were also rescheduled as an outcome of the Goods and Service Tax (GST) implementation. However, this is a short-term ramification that will abate as the industry becomes familiar with the law.
“The current fiscal year holds many promises, with a progressive government at the centre we look forward to more reforms, reduced interest rates and improved liquidity after re-monetisation. By taking a consolidated approach to customer service and delivering holistic integrated services, Bosch Limited is certain of continuing on the path of its past growth trajectory,” he further commented