Bangalore: Bosch Limited, a leading supplier of technology and services, posted net sales and income from operations of INR 2,476 crores in Quarter 1 of the financial year 2016-17*, registering an 8.6 percent increase over the same period of the previous year.
In this reporting period, Profit Before Tax (PBT) stood at INR 543 crores or 21.9 percent of sales. For the same period, Profit After Tax (PAT) from continuing operations stood at INR 375 crores or 15.1 percent of sales, a decrease of 0.7 percent over the same period of the previous year. Despite a sales growth of 8.6 percent, Profit After Tax (PAT) declined due to one-time costs, startup costs for new projects, adverse exchange rate impact and higher depreciation for the quarter.
“Bosch Limited has registered a healthy topline growth in the quarter ended in June 2016. Although the development of the local automotive market remained subdued, we continue to invest in infrastructure and technology. We are working closely with our customers for the introduction of BS6 emission norms by 2020 and have the right products and experience to contribute towards meeting the emission standards,” said Dr. Steffen Berns, managing director of Bosch Limited. “We welcome the passage of the GST (Goods and Service Tax) Amendment Bill, which we expect to lead to a big boost for the Indian economy. Our IT systems have already been upgraded and are GST compliant. We are also optimizing our supply chain and logistics to benefit from the introduction of GST,” said Dr. Berns.
Snapshot of business divisions’ performance in Quarter 01 of 2016-17
Overall, the Mobility Solutions business divisions grew by 8.6 percent and outperformed the automotive market which grew by 4.2 percent in this period. The domestic sales increased by 13.1 percent.
The business divisions of the sectors beyond mobility also performed well this quarter with a growth of overall 8.6 percent due to strong order growth in all divisions, backed by strong exports.
Sale of Starter Motors and Generators division
In accordance with the approvals received from the Board of Directors and from the shareholders, Bosch Limited has executed a Business Transfer Agreement on August 01, 2016 and has sold its Starter Motors and Generators business to Robert Bosch Starter Motors Generators India Private Limited, a 100 percent subsidiary of Robert Bosch Starter Motors Generators Holding GmbH. This 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.
* Bosch Limited adopted Indian Accounting Standards (“Ind AS”) from April 1, 2016 and accordingly the current financial results have been prepared in accordance with the recognition and measurement principles laid down in these standards. The financial results of the previous periods have been restated accordingly.
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