Reflecting a moderate growth of 3.3%, Bosch Limited registered a sales revenue of ₨ 2,030.3 crores in the third quarter of 2012 over the same period of last year. Growth is relatively lower, primarily due to the continuing economic slowdown and negative performance of the automotive segment.
Profit Before Tax (PBT) stood at ₨ 279.1 crores for the third quarter - accounting for a decline of 31.2% as compared to the same period of 2011. This fall was largely due to (i) Higher material cost caused by adverse exchange rate movement and (ii) Increase in depreciation on account of higher capital base, as anticipated earlier. Profit After Tax (PAT) at ₨ 202.8 also saw a corresponding decline of 29.6% over the same period last year.
Starter and Generator division continued its impressive growth by 52.6%, as compared to the same period of 2011, on the back of higher sales from new base line generators to both local and export customers.
The sales in Diesel Systems business has declined by 5.0%. Domestic sales have grown by 4.1% despite negative growth in the heavy commercial vehicle and tractor segments in the third quarter of 2012. The growth in domestic sales was offset by a sharper decline in the export segment on account of the economic slowdown in the European region.
The sluggishness of the overall economic situation has impacted the high performing divisions of Power Tools and the Automotive Aftermarket which posted a moderate growth of 6.5%, and 9.5% respectively. Security technology posted a healthy growth due to major projects executed in both public address and video system products.
Overall, the net sales and income from operations grew by 6.7% in the nine months of the year 2012. The company posted net sales and income from operations of ₨ 6,455.1 crores in the nine months. Profit before tax fell by 9.1% at ₨ 1,101.2 crores, compared to the nine months of 2011. The adverse impact on profit on account of unfavorable exchange rate and higher depreciation has been offset by cost reduction measures initiated by the company. The decline in operating profit is partially offset by higher treasury income on account of profit on sale of marketable securities.
Commenting on the company’s financial results, Mr. V K .Viswanathan, Managing Director, Bosch Limited, said “The sharp slowdown in the commercial vehicles and tractor segments in the domestic market and weak business condition in Europe took a toll on the company’s performance. There are some signals that the worst is over, given the marginal recovery in recent weeks. We are therefore cautiously optimistic about the near future and are hopefull that our investments in technology, capacity expansion, marketing and sales network will start paying off in the medium term. We anticipate that the automotive market will get a boost from the festive season sales demand, however it will be far from compensating for the slowdown in 2012”.
About Bosch
The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, more than 300,000 associates generated sales of 51.5 billion euros in fiscal 2011. The Bosch Group comprises Robert Bosch GmbH and its roughly 350 subsidiaries and regional companies in some 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Bosch spent some 4.2 billion euros for research and development in 2011, and applied for over 4,100 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial. Further information is available online at www.bosch.com and www.bosch-press.com
About Bosch in India In India
Bosch is a leading supplier of technology and services in the areas of automotive and industrial technology, consumer goods and building technology. Additionally, Bosch also has in India, the largest development centre, outside Germany, for end to end engineering and technology solutions. The Bosch Group operates in India through six companies, viz, Bosch Limited, Bosch Chassis Systems India Limited, Bosch Rexroth India Limited, Robert Bosch Engineering and Business Solutions Limited, Bosch Automotive Electronics India Pvt Ltd, Bosch Electrical Drives India Pvt Ltd.. In India, Bosch set up its manufacturing operation in 1953, which has grown over the years to include 13 manufacturing sites and 7 development and application centers. Bosch Group in India employs over 25,000 associates. In India it generated consolidated revenue of over Rs. 11,300 crores in 2011. In India Bosch Limited is the flagship company of the Bosch Group. It earned a revenue of over Rs 8000 crores in 2011. Additional information can be accessed at www.boschindia.com
