Bosch net down 5.1% in 2017-18

Bengaluru: German auto component major Bosch Ltd on Tuesday reported Rs 1,371 crore consolidated net profit for fiscal 2017-18, a 5.1 per cent decline from Rs 1,444 crore in the previous fiscal from continuing operations.

In a regulatory filing on the BSE, the city-based Indian subsidiary of Bosch GmbH said consolidated revenue from operations, however, grew 12 per cent annually to Rs 11,690 crore in the fiscal under review from Rs 10,435 crore last year.

Net profit for fiscal 2018 after discontinuing operations, however, declined 21 per cent annually from Rs 1,741 crore year ago.

“The net profit for the previous fiscal includes profit from sale of the Starter Motors and Generators Business on August 1, 2016,” noted the filing.

For the fourth quarter (Q4), net profit declined 1.6 per cent to Rs 434 crore from Rs 441 crore in the same period year ago but shot up 55 per cent sequentially from Rs 281 crore quarter ago.

Revenue for the quarter under review grew 22.6 per cent to Rs 3,158 crore from Rs 2,575 crore in the like period year ago and 2.8 per cent sequentially from Rs 3,0732 crore quarter ago.

“Our domestic sales have been growing steadily as India’s automobile sector shows promising growth in the future,” said Bosch Managing Director Soumitra Bhattacharya in a statement.

With the government doubling the gratuity to employees to Rs 20 lakh from Rs 10 lakh under the Payment of Gratuity Act from fiscal 2018, the company provided for an additional amount towards one-time past service cost.

As a result, profit before tax declined 2.5 per cent annually to Rs 2,041 crore for the fiscal from Rs 2,094 crore in the previous fiscal.

The company declared a whopping 1,000 per cent final dividend of Rs 100 per share of Rs 10 face value for FY 2018 as against 900 per cent or Rs 90 in FY 2017.

The company’s blue-chip scrip of Rs 10 per share gained Rs 497.95 at the end of trading on the BSE to close at Rs 18,122.45 as against Monday’s closing rate of Rs 17,624.50 and opening rate of Rs 17,554.70.

Noting that business developed across the key sectors, Bhattacharya said the company had invested Rs 460 crore in the fiscal for rolling out new products at its facilities at Bidadi near Bengaluru and Nashik in Maharashtra.

“As India is a priority market for us, we will continue to invest in the new fiscal (2018-19,” he said.

The Mobility Solutions business grew 15 per cent as against the domestic automotive market growth of 11 per cent for the fiscal. Export sales increased 17 per cent.

On the business outlook for this fiscal (FY 2019), Bhattacharya said as the automotive industry growth was expected to grow in the future with the country gearing up to achieve Bharat Standard (BS)-VI in 2020 and adopt electro-mobility solutions built for local conditions.

“With an optimistic market outlook, we are confident of strong revenue growth in future,” he added.

The automotive industry accounts for 7.1 per cent of the country’s Gross Domestic Product.