Bengaluru, August 11:
The Indian operations of the world’s leading auto parts’ maker Bosch has posted a 19.3 per cent decline in net profit to ₹303 crore for the first quarter of this fiscal because of change in product mix.
Change in the product-mix was necessitated owing to the introduction of Bharat Stage (BS) IV emission norms across India beginning April 1, 2017. Subsequently, material cost and freight cost increased. “Earlier this year, the Union Government passed the mandate for all vehicles to changeover from BS III emission norms to BS IV emission standards. Bosch was able to offer its customers the required technology by ramping up its production, inclusive of its suppliers”, stated Soumitra Bhattacharya, Managing Director, Bosch Ltd, and President Bosch Group in India.
Bosch posted gross sales and income from operations of ₹2,770 crore, registering a 3.3 per cent increase over the same period of the previous year.
Bosch Mobility Solutions businesses grew 5.2 per cent and outperformed the automotive market which grew 2.7 per cent (excluding two-wheeler) in this period. Key performing divisions were the diesel systems business, which registered a sales growth of 8.1 per cent. Gasoline systems’ sales also registered a double-digit growth of 53.6 per cent. The company’s business beyond mobility sector registered an overall decline of 11.4 per cent due to lower export orders in the packaging technology business division. Customer orders were also rescheduled as an outcome of the Goods and Service Tax (GST) implementation. However, this is a short-term ramification that will abate as the industry becomes familiar with the law.
“The current fiscal year holds many promises, with a progressive government at the centre we look forward to more reforms, reduced interest rates and improved liquidity after re-monetisation. By taking a consolidated approach to customer service and delivering holistic integrated services, Bosch is certain of continuing in the path of its past growth trajectory,” Bhattacharya said.
(This article was published on August 11, 2017)
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