Bosch Limited, a leading supplier of technology and services, registered net sales and income from operations of Rs 10,415 crore in the past 12 months, an increase of 9.5% compared to the preceding 12 months period. Profit Before Tax increased by 23.6% and stands at Rs 1,859 crore. Profit After Tax stands at Rs 1,245 crore which is a 23.2% increase compared to the previous year. “All business sectors of Bosch Limited developed positively in the past 12 months,” said Dr. Steffen Berns, Managing Director of Bosch Limited, at the company’s annual press conference.
Business development in 2015-16
Bosch’s Mobility Solutions business sector grew by 8.5% in the 12 months period from April 2014 to March 2015. The domestic business developed strongly and increased by 11.5% outperforming the domestic automotive market which grew by 3.7% in the same period. Within the Mobility Solutions business, the Gasoline Systems division registered a strong double-digit growth. The Diesel Systems and Automotive aftermarket divisions also performed well.
The Bosch business sectors beyond Mobility Solutions posted double-digit growth driven by Security Systems, Packaging Technology as well as Energy and Building Solutions divisions. In view of the company’s results, the Board of Directors recommended a dividend of Rs 85 per share for this 12 months period, the same as for the previous 15 months period.
Results for the quarter ended March 2016
Bosch Limited posted net sales and income from operations of Rs 2,635 crore, an increase of 12.2% over the corresponding quarter of 2015. In the current quarter, Profit Before Tax (PBT) stood at Rs 561 crore, a 26% increase compared to the previous year. The increase in profit is mainly due to favorable product mix, increased operational efficiencies and productivity increase. The mobility solutions sector grew by 12.6%, compared to 5% growth of the automotive market this quarter. Within the segment of Mobility Solutions, Diesel Systems and Gasoline Systems divisions registered double digit growth. The business beyond Mobility Solutions also grew moderately, driven by strong performance of the Security Systems and Packaging Technology divisions. “The domestic business of our company grew well above the production volumes of the automotive market again in this quarter. Exports declined due to weak demand from our export markets”, said Dr. Berns.
Outlook 2016: Moderate growth under challenging market conditions
According to Dr. Berns, the market performance of the coming quarters will be determined by factors such as monsoon, fuel prices, interest rates and speed of execution of government reforms. “We expect moderate growth in the automotive industry and remain cautiously optimistic about the Indian market this year,” he said. He further elaborated that the business environment remains dynamic and challenging with the announcement of the BS6 emission norms. “Through proactive investments in our infrastructure and in the competence development of our associates over the past years, we feel well prepared for the upcoming emission legislation. We are in close interaction with our customers and supporting them to define the BS6 strategies for all applications,” stated Dr. Berns.
Continuous investment: Opening of new manufacturing locations
During the last 12 months 2 new manufacturing plants of Bosch Limited started operations. The Diesel Systems plant at Bidadi was inaugurated in August 2015. The company’s Power Tools plant in Chennai which is designed to support a wide range of products for the Indian market was inaugurated in November 2015. Overall the company made capital investments of around Rs 480 crore in 2015-16 and plans a further investment of around Rs 770 crore this year at its plants in Bidadi and Nashik for Common Rail pumps and injectors and in Bangalore for its R&D Tech center.
Skill development and sustainability measures
Bosch Limited also continued its activities in skill development and corporate social responsibility (CSR) in the past year. As a result, the Bosch Vocational Center in Bengaluru has again been declared as the ‘Best Establishment’ by the President of India – Bosch Limited received this award for the 51st time. Bosch’s CSR initiative of providing short-term job oriented trainings for disadvantaged youth across India has led to over 3,800 young people finding employment in the last 2 years. Bosch Limited’s Child Health Development Program (CHDP) has positively impacted around 40,000 children across Bengaluru, Nasik and Jaipur. It provides access to healthcare facilities for children from disadvantaged economic backgrounds.
When it comes to sustainability at its own manufacturing facilities, Bosch Limited pays attention to adopt environmentally friendly practices. For example, in the past year the Company has initiated solar power plant projects at some of its manufacturing locations and has a total installed capacity of 5 MW, with a further 3 MW currently under construction.
Bosch Group worldwide business outlook for 2016
Following a record year in 2015, the global Bosch Group wants to continue its growth trend this year. The leading global supplier of technology and services expects worldwide sales to grow within an exchange rate-adjusted range of 3% to 5% in 2016. Speaking at the company’s annual press conference in Germany in April, Bosch CEO Dr. Volkmar Denner said: “We plan to grow not only with innovative products, but also with innovative services.” In the connectivity business, Bosch focuses on the “3S’s”,sensors, software, and services. The company is increasingly using connected services to build on its broad basis in the hardware business. As it does so, Bosch benefits not just from its technological diversification, but also from its wide-ranging industry and domain expertise. The newly created Bosch Global Service Solutions division, the recently established Bosch IoT Cloud, as well as the Bosch Smart Home System launched at the start of 2016 contribute to this strategy.
