Bangalore : Bosch Limited, a leading supplier of technology and services, posted net sales and income from operations of Rs. 2,431 crores, thus registering a 10.8 per cent increase over the previous year (Q1 of 2013). Domestic sales increased by 8.6 per cent and Exports grew by 35 percent over Q1 2013.
Commenting on its financial results, Dr. Steffen Berns, Managing Director, Bosch Limited said, “The positive results for the quarter are a direct reflection of the good performance of our Diesel Systems and Gasoline Systems divisions.”
Profit Before Tax (PBT) at Rs. 452 crores increased by 16.9 percent while the Profit After Tax (PAT) stood at Rs. 326 crores, resulting in an increase of 25.5 per cent as compared to Q1 2013.
Diesel Systems benefitted from the strong tractor production and higher sales of vehicles fitted with Bosch equipments. Although overall results are positive, a continued weak consumer sentiment has limited our growth in the trading divisions. For the remaining quarters of 2014, it will be challenging to continue on this growth path.
Adding further, he said, “Operating profits, which increased by 4.3 percent only, continue to be under severe pressure, due to rupee depreciation, inflation and material cost increase. Our efforts to improve operational efficiency have yielded positive results and are being continued. The overall profit (PBT) has been boosted by increased treasury income, which includes a onetime capital gain on sale of financial investments. We continue to prepare for mid-term expansion with cautious optimism and hope for the much-awaited revival of the economy and implementation of pending policies post elections.”
The overall Automotive business of Bosch Limited grew by 12.6 per cent. Diesel Systems division was particularly strong mainly due to the strong local demand and additional exports of distributor pumps. The Gasoline Systems also picked up momentum in the first quarter, and Starter Motors and Generators Division continued to grow steadily. The Non-Automotive businesses overall grew by only 4.9 percent, mainly due to tight liquidity in the market for trading business.
