Companies

Bosch India Q4 profit plunges to ₹81 crore on Covid impact

Our Bureau Bengaluru | Updated on May 22, 2020 Published on May 22, 2020

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Auto parts major Bosch India has posted a decline of 80 per cent in net profit to ₹ 81.14 crore for the fourth quarter of FY 2019-20 because of the market slowdown and the impact of the coronavirus pandemic.

The company, which consists of 16 manufacturing plants and 15 legal entities, posted a 17.8 per cent decline of ₹2,377.28 crore in total revenue for the same period. Its Managing Director Soumitra Bhattacharya said the capex for the year will be about 40-50 per cent lesser than the previous year’s ₹350-500 crore.

“The financial figures reported are in-line with the downward trend in the automotive industry which has been going through a challenging phase for some time and is now having to deal with the impact of the coronavirus. More than ever, it is now important to stay connected with associates and customers and assess ground-level activities. We have to prepare ourselves for a prolonged slowdown in the market in FY 2020-21,” said Bhattacharya.

During the quarter, Bosch Limited has made an incremental provision of ₹297 crore, towards various restructuring, reskilling and transformational projects. The PAT from continuing operations before and after exceptional items stood at 13.9 per cent and 3.6 per cent of total revenue from operations, respectively.

“Bosch is adapting to the current market developments with measures to manage resources and enhance operational efficiencies. Various restructuring and transformation projects are under implementation to secure future profitability and growth. We will continue our investments in future business viz. electrification, mobility services and revamping of our Adugodi campus as a technology hub,” said Bhattacharya.

Total revenue of Bosch Limited’s Mobility Solutions Business sector decreased by 23.7 per cent in the quarter ending on March 31, 2020. Within this business sector, total revenue of the Powertrain division declined by 29.5 per cent, while the Two-Wheeler and Powersports product unit witnessed good growth during the quarter.

Business development in FY 2019-20

Bosch’s Mobility business sector declined by 24.4 per cent in 2019-20, due to slowdown in the auto segment. Domestic sales declined by 25.9 per cent and export sales declined by 6.1 per cent. Within the Mobility segment, the Powertrain Solutions business registered a decline of 30.2 per cent owing to low performing automotive market. Business beyond Mobility solutions has recorded a decline of 14.4 per cent.

Considering the company’s performance, the board of directors recommended a dividend of ₹105 per share for this 12-month period.

Published on May 22, 2020

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