Bosch Ltd's Gasoline Systems and Automotive Aftermarket divisions performed strongly and registered double-digit growth in the third quarter of 2015-16.
05 Feb 2016 | 5360 Views | By Autocar Pro News Desk
Bosch Ltd, the Indian arm of the German automotive technology and services major, has posted net sales and income from operations of Rs 2,651 crore in the third quarter (Q3) of FY 2016, registering a 12.8 percent increase over the same period of the previous year.
This period sees ...
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Bosch Ltd, the Indian arm of the German automotive technology and services major, has posted net sales and income from operations of Rs 2,651 crore in the third quarter (Q3) of FY 2016, registering a 12.8 percent increase over the same period of the previous year.
This period sees Profit Before Tax (PBT) at Rs 321 crore or 12.1 percent of sales. Profit After Tax (PAT) stands at Rs 221 crore or 8.3 percent of sales, an increase of 99 percent. Improved sales as well other factors such as the reduction in employee benefit costs, the realisation of benefits from organizational restructuring undertaken in the previous year and a low base in 2014 due to one-time effects, have contributed to this result.
“Bosch Ltd has registered a healthy growth in the quarter ended December 2015. Our focus on operational efficiencies and productivity has continued to yield good results,” said managing director Dr Steffen Berns. “Although the development of the automotive market remained subdued, we continue our proactive spends on capex for infrastructure and technology. With our motivated and competent employees, we are well prepared for the future. The market performance of the coming quarters will be determined by factors such as the implementation of key legislation and execution of infrastructure projects,” said Dr. Berns. “We are keeping a close watch on the developments regarding the BS VI emission legislation. We support the introduction of BS VI emission norms by 2020 and have the right products, experience and testing infrastructure to meet the emission standards,” he further elaborated.
Business divisions’ performance in Q3
Overall, the company’s Mobility Solutions businesses grew by 10.7 percent and outperformed the automotive production volumes, which grew by only 1 percent in this period. The Gasoline Systems and Automotive Aftermarket divisions performed strongly and registered double-digit growth in the quarter.
The business divisions of the sectors beyond mobility solutions also performed strongly this quarter with an overall growth of 21 percent.
Transfer of starter motors and generators division to standalone Bosch subsidiary
The Board of Bosch Limited has approved in principle, the sale of its starter motors and generators business to a standalone Indian subsidiary of the Bosch Group. The proposed transaction is part of the planned global realignment of the Starter Motors and Generators division. In June 2015, the Bosch Group informed that it intends 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.