Our Bureau Bosch Ltd, a supplier of technology and services, has posted a total loss of ₹64.79 crore for the second quarter of the current fiscal as the slowdown in the auto industry and the impact of the pandemic continue to bog down the company.

The company had posted a net profit of ₹98.40 crore for the same period a year go. Its total revenue grew 7.2 per cent to ₹2,479 crore in Q2 FY21.

Soumitra Bhattacharya, MD of Bosch Ltd and President of the Bosch India Group, told BusinessLine about 1,000 employees have opted for VRS over the past couple of years. “Each of the employees has been adequately compensated,” he said.

The Indian automotive market continues to undergo structural changes. In order to be fit for the future, Bosch has continued investment in its 3R strategy of restructuring, reskilling and other transformational projects. To support this, an additional amount of ₹400 crore has been provided and disclosed as an exceptional item for the quarter ended September 30, 2020, a statement from the company said.

“The auto industry is going through a prolonged slump. However, there has been a sequential recovery month over month in segments mainly led by two-wheelers and tractors. We will witness a faster growth if we have the government’s support on GST reduction and scrappage policy,” said Bhattacharya.

Division-wise performance

Sales at the powertrain solutions business saw an increase in Q2, helping Bosch’s Mobility Solutions turnover grow 7.5 per cent.

The two-wheeler and powersports business continued to witness double-digit growth during the quarter.

The Beyond Mobility segment posted a fall of 4.6 per cent on account of a decline in business realted to solar energy and security technologies, which are mainly project-driven.

“We have been continuously investing in the transformation of Bosch to make the company fit for the future. We are closely listening to our employees, customers and other stakeholders to operate efficiently in these times of new normal. Even in these turbulent times, we are cautiously optimistic of heading towards a breakeven for this financial year,” said Bhattacharya.

Investment in start-up

Bosch has invested ₹14.8 crore in Routematic (Nivaata Systems Pvt Ltd), a venture-funded start-up based out of Bengaluru, creating urban mobility innovations.

Through this investment, Bosch plans to expand its offerings from being an automotive systems and component manufacturer to a technology enabler in the mobility life cycle through its digital platforms.

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