Bosch’s robust growth driven by HCV and tractor segments

Bosch Ltd., a leading supplier of technology and services, posted gross sales and income from operations of Rs. 2,811 crores in the third quarter of 2016-17, registering a 7.2 per cent increase over the same period of the previous year.

Mr. Soumitra Bhattacharya, Managing Director of Bosch Ltd.

In this reporting period, profit before tax (PBT) from continuing operations stood at Rs. 299 crores or 10.6 per cent of sales. For the same period, profit after tax (PAT) from continuing operations stood at Rs. 215 crores, a decrease of 23.5 per cent over the same period of the previous year. PAT declined due to factors such as decreased domestic demand, front-ended CSR expenses, cost of restructuring and higher depreciation.

“India’s overall auto production grew by 1.4 per cent as compared to the previous year. In this context, Bosch Ltd. grew by 7.2 per cent as compared to the previous year’s growth, driven by good developments in the tractor and heavy commercial vehicle market segments. Sales were influenced by the Indian automotive market which was impacted by the demonetization in the last quarter, especially in December,” said Mr. Soumitra Bhattacharya, Managing Director of Bosch Ltd., and President of the Bosch Group in India.

“We are well prepared for the changeover to BS4 in April as well as for the transition to BS6 emission legislation with our products, experience and testing infrastructure facilities. We are working closely with our customers on BS6 projects. That apart, by focusing on strategic topics of operational efficiencies and productivity improvements we will continue to remain fit for the future,” he added.

Overall, the Mobility Solutions business grew by 3.6 per cent in this period. The main contribution was from Gasoline Systems which posted a strong double-digit growth.

The business divisions of the sectors beyond Mobility performed strongly with an overall growth of 25.3 per cent. The company has been focusing on offering integrated cross-divisional solutions that target India‘s megatrends.

The Board of Directors has declared a special payout in the form of an interim dividend of Rs. 75 per equity share of Rs. 10 each.

The Board of Directors of Bosch Ltd., at its meeting held on February 10, approved the appointment of Mr. Jan Oliver Röhrl, Executive Vice-President (Engineering) and Regional President (Diesel Systems), as an Alternate Director to Mr. Peter Tyroller, Non-Executive Director, with effect from February 11. By virtue of his being in employment of the company and consequent to his appointment as an Alternate Director, Mr. Röhrl has been appointed as a Whole-time Director from February 11, 2017 to December 31, 2020.

While accepting the resignation of Mr. S. Karthik as Company Secretary & Compliance Officer of the company, and his appointment as the Joint Chief Financial Officer, the Board also has approved the appointment of Mr. R. Vijay as Company Secretary & Compliance Officer, with effect from February 11.