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Bosch Ltd, one of the leading suppliers of technology and services, has posted a net profit of ₹372 crore on a standalone basis during the second quarter of the current fiscal following substantial recovery in sales as the lockdown restrictions have eased across States. During the corresponding period last year, the company had posted a loss of ₹64.79 crore.
The company said its total income grew 17.88 per cent to ₹3,042.33 crore. “Although the automotive market production in India has currently declined due to the ongoing semiconductor shortage, there are first signs of recovery. However, uncertainty in the market remains a major concern for the automotive industry going forward,” said Soumitra Bhattacharya, Managing Director, Bosch Limited & President, Bosch Group in India.
PLI scheme
With regard to the recent announcements from the government on the automotive PLI, the latest in a series of emerging-industry focused PLI schemes, he added, “The PLI comes at the right time as a much-needed impetus to the automotive industry which has now faced several challenges since 2019 including Covid-19 and the ongoing semiconductor crisis. The focus on incentivizing advanced automotive technology components will enable the industry to accelerate future technologies in mobility with an aim to bring India at par with global standards. Bosch will participate to maximise the PLI benefits which will help in overcoming some of the shortcomings linked to industrialising such technologies.”
Business units performance
The company said its product sales increased 20 per cent in the second quarter of FY 2021-22, with the Powertrain Solutions’ division registering an increase of 16 per cent and the Aftermarket division witnessing an increase of 27 per cent due to a low base in Q2 of FY 2020-21.
Outside the Mobility Solutions business division, Bosch recorded an increase of 36 per cent mainly due to growth in the power tools segment in July-September 2021. The company witnessed a recovery in sales volumes with gradual improvement in the business environment from Covid-19 pandemic.
The board has accorded approval to invest ₹13.35 crore for a 26 per cent stake in the Hyderabad-based B2B e-commerce marketplace, Autozilla solutions.
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