Bosch reports 19% fall in profit for Oct-Dec

Leading automotive component manufacturer Bosch today posted over 19 percent decline in net profit to Rs 138.98 crore for the October-December quarterof 2013 due to slowdown in the auto sector. The company had reported a net profit of Rs 172.05 crore for the same period of 2012.

"The prolonged slowdown of the automotive industry in 2013 coupled with weak consumer demand has impacted the overall industry as well as our growth," Bosch Managing Director Steffen Berns told reporters here. "Our non-automotive business has been doing very well with its share increasing steadily as we continue to expand our operations in this sphere," he added.

Total income rose to Rs 2,162 crore during the quarter under review, from Rs 2,131.80 crore in the year-ago period, according to a BSE filing by the company. For the whole 2013 year, Bosch reported a net profit of Rs 884.64 crore, down from Rs 958.27 crore in 2012 fiscal. Total income from operations (net) rose to Rs 8,820.06crore in 2013, from Rs 8,659.07 crore in the previous year, the filing said.

"Our cumulative measures on cost control throughout this year helped us to limit the decline in profitability despite the unutilised capacity," Berns said. Exports grew by 12.5 percent to Rs 1,058 over 2012. In view of the company's results, the Board of Directors recommended a dividend of Rs 55 per share for 2013, he added. The automotive business of the company registered a marginal decline of 0.7 percent compared to Indian automotive market, which declined by 3 percent on the production volume (excluding 2-wheeler segment).

Diesel systems was affected by the insistent decline inthe domestic sales of commercial vehicles and passenger cars. "However, the division retained its market share despite this extended slump, while the division of Gasoline Systems grew moderately," he added. Starter Motors and Generators registered double-digit growth driven by the significant increase in domestic sales and exports of the New Base Line Generators, Berns said. "Automotive Aftermarket had a low growth owing to the slowdown and tough market conditions," he added.

"Overall, we are positive of the mid-and long-term growth prospects. In particular, we expect to see the situation improve following this year's general elections," Berns said. On the non-automotive business, he said the segment grew by over 19 percent. Power Tools and Packaging Technology division registered double-digit growth for 2013.

On expanding company's broad-based footprint, Berns said: "We are committed to expanding and strengthening our already broad-based footprint here. Last September, we broke ground in Bidadi on a new manufacturing unit for diesel injection components." This year, the company will be further augmenting its existing facility at Adugodi which will be transformed into a research and development hub.

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