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Annual press conference 2017 in Bengaluru
Bosch Limited registers growth of 7.6 percent

 
 
 

Contacts


Rele Ameet Shashikant
Phone: +91 80 2299-9777

 

Roohie Menon
Phone: +91 80 2299-2440

 

2017-05-25 | India | Corporate News

  • Bosch Limited invested INR 630 crores in 2016-17
  • Bosch breaks ground at Bidadi for phase II development
  • For the quarter ended March 2017, gross sales and income from operations increased by 6.1 percent
  • Dividend of INR 90 per share proposed



Bengaluru – Bosch Limited, a leading global supplier of technology and services, registered gross sales and income from operations of INR 10,983 crores (over 1.5 billion euros) for the past 12 months. The company has registered an increase of 7.6 percent compared to the preceding 12 months period. Profit before Tax (PBT) stands at INR 2,094 crores or 19.1 percent of gross sales and income from operations. “Bosch Limited’s business grew well above the production volumes of the domestic automotive market, both in the current quarter and the complete year. Exports declined due to weak demand from our overseas markets,” said, Mr. Soumitra Bhattacharya, managing director, Bosch Limited.


Positive business development across all sectors in 2016-17

For the financial year 2016-17, the 12 month period from April 2016 to March 17, Bosch Limited’s Mobility Solutions sector grew by 5.9 percent. The domestic business developed strongly and increased by 8.6 percent, outperforming the domestic automotive market which grew by seven percent in the same period. Within the Mobility Solutions business, the Gasoline Systems business registered a strong double-digit growth. The Two-wheeler business also performed well registering considerable growth mainly arising from domestic market.


The business sectors beyond Mobility Solutions posted double-digit growth of 16.8 percent. Growth was driven by the Security Systems, Packaging, and Energy and Building Solutions businesses of Bosch Limited.


In view of the company’s results, the Board of Directors recommended a final dividend of INR 90 per share for this 12 months period, over and above the special dividend of INR 75 per share on account of consideration received from sale of Starter Motors and Generators business. This was paid in the month of February, 2017.


Results for the quarter ended March 2017

For the quarter ending March 2017, Bosch Limited posted gross sales and income from operations of INR 2,734 crores, an increase of 6.1 percent over the corresponding quarter of 2016. In the current quarter, Profit before Tax (PBT) stood at INR 662 crores, nine percent 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 4.3 percent. Within the segment of Mobility Solutions, Gasoline Systems and Two-wheeler businesses registered double-digit growth.


Business beyond Mobility Solutions grew by 17.2 percent, growth was mainly registered in business units such as, Security Systems, ATMO, and Energy and Building Solutions businesses.


Outlook 2017: Moderate growth under challenging market conditions

Speaking of the outlook for 2017, Mr. Bhattacharya further commented, “We continue to remain cautiously optimistic about the current financial year, while adopting necessary course correction. A progressive government focused on reforms, reducing interest rates, expectations of a normal monsoon and improved liquidity post re-monetization, substantiates our current outlook. These factors have also helped improve market sentiment.” Additionally key reforms like Goods and Service Tax (GST), smart cities and stable political situation will contribute to moderate growth both in the automotive as well as non-automotive sector.


Adding further he mentioned, “The proposed roll out of GST by July 01, 2017 is expected to have a short-term disturbance, however, in the mid- and long-term it will help the growth story of India. Bosch India is well prepared for GST led by an excellent cross-functional team.”


Continuous investment: Development of manufacturing locations

On May 22, 2017 the management of Bosch Limited broke ground at Bidadi for the development of the second phase. Expected to be completed by mid of 2019, the second phase of Bidadi will have the capacity to accommodate around 2,500 associates. A powertrain plant, Bidadi will primarily manufacture new generation and conventional fuel injection products and components.


During the last 12 months, major investments were made towards development of new products and facilities in Bidadi and Nashik. Overall the company made capital investments of around INR 630 crores in 2016-17. “Bosch has consistently been investing in India, we will continue to make investments of the same nature for the current financial year.”


Bosch Group: Global strategy and business outlook for 2017

For 2017, in light of a subdued economic outlook and geopolitical uncertainty, Bosch aims to achieve sales growth of between three and five percent. And despite still heavy upfront investments in safeguarding the company’s future, result is set to rise. “Business success today gives us the leeway to shape tomorrow’s world,” said Dr. Volkmar Denner, the chairman of the Bosch board of management. “As an innovation leader, we are shaping and driving transformation,” Denner added. The focal points of this transformation are changes in the mobility sphere and IoT connectivity. By 2020, all Bosch’s new electronic products will feature connectivity. The key to this is artificial intelligence (AI). Over the next five years, Bosch will be investing 300 million euros in its own center for artificial intelligence.

About Bosch Group

The Bosch Group is a leading global supplier of technology and services. It employs roughly 389,000 associates worldwide (as of December 31, 2016). According to preliminary figures, the company generated sales of 73.1 billion euros in 2016. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and En-ergy and Building Technology. As a leading IoT company, Bosch offers innovative solutions for smart homes, smart cities, connected mobility, and connected industry. It uses its expertise in sensor technology, software, and services, as well as its own IoT cloud, to offer its custom-ers connected, cross-domain solutions from a single source. The Bosch Group’s strategic ob-jective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.” The Bosch Group comprises Robert Bosch GmbH and its roughly 450 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers near-ly every country in the world. The basis for the company’s future growth is its innovative strength. At 120 locations across the globe, Bosch employs 59,000 associates in research and development.

Additional information is available online at
www.bosch.com
www.iot.bosch.com
www.bosch-press.com
twitter.com/BoschPresse

About Bosch in India

In India, Bosch is a leading supplier of technology and services in the areas of Mobility Solu-tions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Addi-tionally, Bosch has in India the largest development center outside Germany, for end to end engineering and technology solutions. The Bosch Group operates in India through twelve companies, viz, Bosch Limited, Bosch Chassis Systems India Private Limited, Bosch Rexroth India Private Limited, Robert Bosch Engineering and Business Solutions Private Limited, Bosch Automotive Electronics India Private Limited, Bosch Electrical Drives India Private Lim-ited, BSH Home Appliances Private Limited, ETAS Automotive India Private Limited, Robert Bosch Automotive Steering India Private Limited, Automotive Services and Solutions Private Limited, New Tech Filters India Private Limited and Mivin Engineering Technologies Private Limited. In India, Bosch set-up its manufacturing operation in 1951, which has grown over the years to include 18 manufacturing sites, and seven development and application centers. Bosch Group in India employs over 31,000 associates and generated consolidated revenue of about ₨.18,300 crores (1.8 billion euros)* in 2016 of which ₨. 12,950 crores* from third par-ty. The Group in India has close to 18,500 research and development associates.

In India, Bosch Limited is the flagship company of the Bosch Group. It earned revenue of over ₨. 10,500 crores in 2016.

Additional information can be accessed at www.boschindia.com