Click it and Unblock the Notifications
Bosch Limited Announces 14.1% Profit Growth In First Quarter FY 2024-25
Bosch Limited, a prominent technology and services supplier, reported total revenue from operations of INR 4,317 crores (481 million euros) for Quarter 1 of FY 2024–25. This marks a 3.8% increase compared to the same period last year, driven heightened demand in the automotive market, particularly in the passenger car segment.
The Profit Before Tax (PBT) for this quarter stood at INR 611 crores (68 million euros), representing 14.1% of the total revenue from operations. This is a 14.7% increase over the same quarter of the previous year. The Profit After Tax (PAT) was INR 466 crores (52 million euros), accounting for 10.8% of the revenue from operations.
Performance Snapshot in Quarter 1
Automotive product sales rose by 4.1% compared to the same quarter last year. The Power Solutions business, which makes up 72% of overall automotive product sales, saw a growth of 2.3%, primarily due to sustained consumer demand in the passenger car segment.
The Mobility Aftermarket business experienced an 8.1% growth compared to the same quarter last year, driven by increased market demand for new generation diesel components and robust performance in core product categories.
"The financial year commenced with moderate growth in automotive market despite the challenges of a high base from the previous year, a slowdown related to elections and the summer heatwaves. Continued demand in the passenger car segment, coupled with growth in production and wholesale, resulted in growth for Bosch Limited, this quarter."
"However, retail sales have remained sluggish leading to a rise in the pipeline inventory. Despite the challenges, the overall sentiment in the automotive sector remains positive," said Guruprasad Mudlapur, President of Bosch Group India and Managing Director of Bosch Limited.
Beyond Mobility Business Growth
The Beyond Mobility business recorded a net sales increase of 5.8% over the same quarter last year. This growth was driven by continued expansion in Consumer Goods Product and Building Technologies segments.
"The optimistic growth in Indian economy with higher disposable incomes puts us in a sweet spot with the continued growth in demand for the auto sector. With sustained infrastructural investments, we are well positioned for growth in our Power Tools and Building Technologies businesses. Bosch will continue to strengthen its portfolio through localization and capitalize on the potential of alternate fuel technologies and electric vehicles to usher in a new era of mobility," adds Mudlapur.
Despite some challenges such as high base effects from last year and election-related slowdowns, Bosch Limited has managed to maintain positive momentum due to consistent demand in passenger cars and increased production and wholesale activities.
Overall, Bosch Limited's performance this quarter reflects resilience amidst various market challenges while capitalising on opportunities within both automotive and non-automotive sectors.
Continue with Google