Bengaluru: Bosch Limited, a leading supplier of technology and services, posted net sales and income from operations of INR 2,598 crores in Quarter 2 of the financial year 2015-2016 – registering a 5.7 percent increase over the comparable period of the previous year. Operating profit increased by 9.4 percent which is attributed to reduced commodity prices, lower inflation, tight control on expenses and focus on operational efficiency. Profit Before Tax (PBT) increased marginally by 0.5 percent to INR 460 crores, because of the effect of reduced profit on sale of financial investments, triggered by a change in the rule governing indexation benefits on mutual funds announced in Union Budget 2014. Profit After Tax (PAT) accordingly stood at INR 305 crores, a marginal decline of 0.3 percent, mainly on account of an increase in the corporate tax rate announced in the Union Budget 2015.
“Bosch Limited registered overall moderate growth in the second quarter of the current financial year. Our business divisions in the Mobility Solutions sector as well as our divisions beyond Mobility Solutions developed equally well,” said Dr. Steffen Berns, managing director of Bosch Limited. “Strong operating profit was driven by measures initiated in the last two years such as effective deployment of human resources and improving operational efficiency, which have continued to yield good results,” Dr. Berns added.
Snapshot of Bosch business divisions’ performance in current quarter
Overall, the Mobility Solutions business sector of Bosch Limited grew by 5.2 percent in the quarter July-September 2015 over the corresponding quarter of 2014. “In spite of the weak overall automotive market with only 4.2 percent growth compared to 2014, our domestic sales of mobility solutions grew strongly at 9.2 percent,” stated Dr. Berns. This was driven by all of Bosch’s mobility divisions.
Bosch’s business divisions beyond the Mobility Solutions sector registered an overall growth of 9.7 percent – especially the Power Tools business, Energy business and Packaging Technology grew strongly.
Positive outlook for Bosch in India over the mid-term
Bosch’s forecast for the current financial year remains cautious. “We see a continued recovery in commercial vehicles on a low base and continued moderate growth in passenger cars. However, we expect the demand from the agricultural sector to remain muted. The overall sentiments also remain weak due to below normal monsoons for the second continuous year,” Dr. Berns stated. “We are positive about the mid-term prospects for our business in the Indian market and are well prepared for the upcoming emission legislations. We continue to invest into our facilities, technological innovations and our associates in India,” he further elaborated.
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