Bosch Ltd has posted net sales and income from operations of Rs 2,476 crore in Quarter 1 of financial year 2016-17, registering an 8.6 percent increase over the same period of the previous year.
12 Aug 2016 | 4854 Views | By Autocar Professional Bureau
Bosch Ltd has posted net sales and income from operations of Rs 2,476 crore in Quarter 1 of financial year 2016-17, registering an 8.6 percent increase over the same period of the previous year.
In this reporting period, Profit Before Tax (PBT) stood at Rs 543 crore or 21.9 ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Bosch Ltd has posted net sales and income from operations of Rs 2,476 crore in Quarter 1 of financial year 2016-17, registering an 8.6 percent increase over the same period of the previous year.
In this reporting period, Profit Before Tax (PBT) stood at Rs 543 crore or 21.9 percent of sales. For the same period, Profit After Tax (PAT) from continuing operations stood at Rs 375 crore or 15.1 percent of sales, a decrease of 0.7 percent over the same period of the previous year. Despite a sales growth of 8.6 percent, Profit After Tax (PAT) declined due to one-time costs, startup costs for new projects, adverse exchange rate impact and higher depreciation for the quarter.
“Bosch Limited has registered a healthy topline growth in the quarter ended in June 2016. Although the development of the local automotive market remained subdued, we continue to invest in infrastructure and technology. We are working closely with our customers for the introduction of BS VI emission norms by 2020 and have the right products and experience to contribute towards meeting the emission standards,” said Dr Steffen Berns, managing director of Bosch Limited.
“We welcome the passage of the GST (Goods & Services Tax) Amendment Bill, which we expect to lead to a big boost for the Indian economy. Our IT systems have already been upgraded and are GST compliant. We are also optimising our supply chain and logistics to benefit from the introduction of GST,” said Dr Berns.
How the divisions performed
Overall, the Mobility Solutions business divisions grew by 8.6 percent and outperformed the automotive market which grew by 4.2 percent in this period. Domestic sales increased by 13.1 percent.
The business divisions of the sectors beyond mobility also performed well this quarter with a growth of overall 8.6 percent due to strong order growth in all divisions, backed by strong exports.
Meanwhile, Bosch Ltd has executed a business transfer agreement on August 1, 2016 and has sold its starter motors and generators business to Robert Bosch Starter Motors Generators India, a 100 percent subsidiary of Robert Bosch Starter Motors Generators Holding GmbH. This is part of the planned global realignment of the Starter Motors and Generators division. In June 2015, the Bosch Group had said that it plans to realign its Starter Motors and Generators division, seeking a joint venture partner or a buyer to further improve the competitiveness and growth prospects of the business.