Bosch Ltd Quarterly Result Update

Bosch: Eyeing Electric Future

Bosch Ltd., known for its automotive and technology products, recently shared its financial results for the second quarter of the fiscal year 2024. They reported a sales increase of 12.8% compared to last year, reaching Rs. 4,130 crores. However, this was slightly less than what experts expected and a small drop from the previous quarter.

Most of their sales came from their automotive business, where they make parts for vehicles like heavy commercial vehicles (HCVs) and personal vehicles (PVs). This part of their business did well, growing by 11.7% to Rs. 3,431 crores. They also saw good growth in their non-automotive businesses, like tools and security systems, which grew by 9.9% to Rs. 1,007 crores.

However, their profit margin (the percentage of sales that turns into profit) was a bit lower than before. This was due to selling less profitable products, spending more on goods they didn’t make themselves, and the impact of foreign exchange rates. Their overall profits (EBITDA) still grew by 14% from last year and 5% from the previous quarter, thanks to lower costs in some areas and higher sales.

Their net profit after adjusting for certain items was Rs. 403.3 crores, up 8.3% from last year but down 1.4% from the last quarter. They also had a big one-time gain from selling part of their business.

Looking ahead, Bosch plans to keep innovating and adapting to market changes. They’ve been working on a lot of new projects for cleaner vehicle engines and are expanding their presence in digital platforms and electric vehicles. They’ve committed to investing a lot of money in these areas over the next five years.

Some highlights from their recent business updates include:

•       Production of personal and commercial vehicles went up, but tractors and two-wheelers saw a decline.
•       They did really well in the powertrain solutions segment, which includes parts that help reduce exhaust emissions.
•       Their two-wheeler business grew thanks to their focus on premium motorcycles.
•       They expect good sales in consumer products and building technologies in the coming months.
•       They’re working on localizing more parts in India to reduce reliance on imports.
•       They’re testing a hydrogen-powered truck in Bengaluru.
•       Exports, especially to Europe, have been slow.