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A shortfall in supply of some products, including semiconductors, has dragged Bosch Ltd’s net profit down by 4.58 per cent to ₹185.75 crore for the third quarter of the current fiscal. Total income of the company grew 17.34 per cent to ₹3,140.96 crore.
A press statement from the company said Bosch Ltd has continued investment in its 3R strategy of restructuring, reskilling, redeployment and other transformational projects. To support this, an additional amount of ₹146.6 crore has been provided and disclosed as an exceptional item for the quarter ended December 31, 2020. This is the last tranche extended under the current 3R strategy.
“The sales figure for the festival season in the last quarter was better than anticipated, especially in the tractor and passenger automotive segments. However, the volatilities in the supply chain continued to disrupt growth. Since late last year, the industry has been hit by a shortage in the supply of semiconductors, which has impacted the company’s imports and automotive production in India. Bosch is currently focusing on maintaining supply chains to the extent possible despite a tense market situation while discussing the issues directly with its customers and suppliers,” said Soumitra Bhattacharya, Managing Director of Bosch Limited and president of the Bosch India Group.
There was an increase in the sales of the Powertrain Solutions business division in Quarter 3 of FY 2020-21 by 46 per cent. The two-wheeler and Powersports business continued to witness growth during the quarter. On the other hand, the company’s business in beyond mobility segment posted a decline of 7.7 per cent due to lower revenues in solar energy and building technologies.
The implementation of the approved scrappage policy will undoubtedly improve sales that will benefit the industry and environment. With the current deployment of Covid-19 vaccinations and the array of reforms announced by the Government, the company maintains a cautiously optimistic outlook for the auto sector.
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