- PAT stood at 8.3 percent of sales
- Strong growth in all business sectors
- Board approves transfer of Starter Motors and Generators division to standalone Bosch subsidiary
Bosch Limited, a leading supplier of technology and services, posted net sales and income from operations of INR 2,651 crores in Quarter 3 of FY 2016, registering a 12.8 percent increase over the same period of the previous year.
In this reporting period, Profit Before Tax (PBT) stood at INR 321 crores or 12.1 percent of sales. For the same period, Profit After Tax (PAT) stood at INR 221 crores or 8.3 percent of sales, an increase of 99 percent. Improved sales as well other factors such as the reduction in employee benefit costs, the realization of benefits from organizational restructuring undertaken in the previous year and a low base in 2014 due to one-time effects, have contributed to this result.
“Bosch Limited has registered a healthy growth in the quarter ended December 2015. Our focus on operational efficiencies and productivity has continued to yield good results,” said Dr. Steffen Berns, managing director of Bosch Limited. “Although the development of the automotive market remained subdued, we continue our proactive spends on capex for infrastructure and technology. With our motivated and competent employees, we are well prepared for the future. The market performance of the coming quarters will be determined by factors such as the implementation of key legislation and execution of infrastructure projects,” said Dr. Berns. “We are keeping a close watch on the developments regarding the BS6 emission legislation. We support the introduction of BS6 emission norms by 2020 and have the right products, experience and testing infrastructure to meet the emission standards,” he further elaborated.
Snapshot of business divisions’ performance in Quarter 3 Overall, Mobility Solutions businesses grew by 10.7 percent and outperformed the automotive production volumes, which grew by only 1 percent in this period. The Gasoline Systems and Automotive Aftermarket divisions performed strongly and registered double digit growth in the quarter.
The business divisions of the sectors beyond mobility solutions also performed strongly this quarter with an overall growth of 21 percent. In spite of tight liquidity in the market, the trading business picked up in the third quarter.
Transfer of Starter Motors and Generators division to standalone Bosch Subsidiary The Board of Bosch Limited has approved in principle, the sale of its Starter Motors and Generators business to a standalone Indian subsidiary of the Bosch Group. The proposed transaction is part of the planned global realignment of the Starter Motors and Generators division. In June 2015, the Bosch Group informed that it intends to realign its Starter Motors and Generators division, seeking a joint venture partner or a buyer to further improve the competitiveness and growth prospects of the business