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Poor sales of tractors and commercial vehicles, along with a weak rupee, derailed Bosch in the second quarter ended June 30.
The automotive parts supplier, which follows a calendar accounting year, posted an 11.3 per cent fall in net profit at Rs 247 crore. Net sales were up 6.9 per cent at Rs 2,157 crore. The Bosch scrip was down 0.83 per cent to close at Rs 8,780 on Monday.
“Medium and heavy commercial vehicles were down 12 per cent from last quarter. Tractors, which were booming in 2011, fell this year. We are used to strong levels of growth in previous quarters and this was disappointing,” V.K. Viswanathan, Managing Director, told Business Line .
Bosch has a ‘reasonable quantum’ of imports for components such as common rail systems and electrical products.
These became costlier thanks to the rupee which fell to Rs 55 this quarter, from Rs 47 last year. The Bosch CEO hoped demand for tractors and CVs would pick up during Diwali and some confidence would be back in the system.
“There are positive signs. The markets are holding steady as also the rupee,” he said.
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