Bosch Ltd registers 12.8 per cent profit before tax in Q1 FY 2023-24

BENGALURU: Bosch Litd, a leading supplier of technology and services, on Tuesday posted its total revenue from operations at Rs 4,158 crore (466 million euros) in Quarter 1 of FY 2023–24, an increase of 17.3 per cent over the same quarter last year.

The revenue from operations in Q1 has been higher compared to the previous quarter, mainly due to increased sales of Exhaust Gas Temperature (EGT) components in passenger cars and commercial vehicle segment, outperforming the market, a company release stated.

The Profit Before Tax (PBT) stood at Rs 533 crore (60 million euros) which is 12.8 per cent of total revenue from operations, an increase of 21.7 per cent over the same quarter of previous year.

The Profit After Tax (PAT) stood at Rs 409 crore (46 million euros), which is 9.8 per cent of revenue from operations.

"We are optimistic about the future as we navigate a rapidly changing global market with positive trends in the Indian automotive industry which is witnessing a shift towards premium vehicles and cleaner fuel options and electrification. Hence, embracing change is crucial and we are ready to leverage technological advances to cater to the evolving consumer preferences," Bosch Ltd Managing Director and Bosch Group President in India Guruprasad Mudlapur said.

"With India emerging as a promising market and our focus on green hydrogen and innovative automotive offerings, Bosch is well-positioned for growth and success in the year ahead," he stated.

Rising income levels and an increased focus on value-driven factors are driving growth in the categories of scooters, premium motorcycles, and SUVs, he added.

The Powertrain Solutions business registered a growth of 12.5 per cent over the same quarter of previous financial year outperforming the overall automotive market growth.

This has resulted in an increase of 13.6 per cent in the product sales of the automotive segment. While there are still supply bottlenecks, the global semiconductor supply situation has eased in the recent months. The weakening of demand due to the global economic crisis has helped better distribution of semiconductor supplies across the world.

As a result, the two-wheeler business has experienced a remarkable sales recovery, with a substantial growth of 42.8 per cent compared to the same quarter last year, the statement said.

The Beyond Mobility business, driven by continued growth in consumer products and significant government investments in infrastructure, recorded a 21.5 per cent increase in net sales over the same quarter of previous financial year.

About the outlook for the upcoming fiscal year, Mudlapur said: "Bosch is poised to embrace the transformative changes ahead of us. Cleaner fuels, green hydrogen, and electrification take center stage in our commitment to a climate-neutral future. Bosch India will showcase the BS6 stage 2 hydrogen engine truck, by early 2024. This is also exemplified by the successful launch of our first hydrogen-powered demonstrator vehicle in India in June 2023 which comes after the announcement about the launch of the pilot Hydrogen Engine Testing infrastructure in Bengaluru later last year."

As the global market shows signs of recovery, Bosch approaches it with cautious optimism amidst interest rate fluctuations and affordability concerns, the statement said. Navigating the ever-evolving automotive industry's transformation, the company stands ready to seize opportunities, particularly in India's thriving infrastructure sector, it added.