Bosch Limited analyst Q&A

Hi, morning. Thanks for taking my question. So, the first question is with regard to the Nox plant, interesting to see the quick execution coming through there. Wanted to know , does it qualify under PLI? And if so, what is the extent of benefit one?

No, this plant does not qualify under PLI and we did not apply.

Sure, sir. Because new emissions also qualify for PLI, that’s where I was a little confused hence thought to check it out. Thank you, sir. And when will your PLI related plants will start coming up and you will start accounting in your financials?

So, we are screening of course all the PLI schemes constantly. Currently, as already mentioned, this plant is not ready for the PLI, but we are screening all the time and we are i n close contact to the legislations and rules and regulations.

Sure. Thanks. Related question is with regards to purchase goods. So, you seem to be walking the talk in terms of purchase goods easing off from the peak levels , for last three quarters they seem to have come under control and now almost on 40% of sales. What has helped you here and what is to come forward in the remaining quarters and where this cost will settle down, if you can give direction?

So, purchase goods , I suppose you talk about the traded goods. What has helped us is our constantly work on the localization, and not only on the finished goods, but what we mentioned in the last quarter also that we strongly work on the localization of components, and whatever is possible in India. And you see here now also the first outcome that we make progress in relation between traded and manufacturing goods. Nevertheless, what is coming up new, of course, we first localize the finished goods and then we go step by step into the localization also of the components. Because if you localize everything immediately, we have high risk on our quality which we do not want to have. But here you can see the first outcome of program localization of components as well as finish goods.

Thanks. A nd the last question is with regard to the two -wheeler growth. You seem to be definitely outperforming the industry. Have you won any new clients in OBD 2? Or how do you look at it?

Yes, We have continuously, I mean, we are more or less serving all the major OEMs in the two wheeler spectrum, and this we continue to do as we go along. So, I mean, I do not think we have any OEM who's not in our scope right now.

Sure. Thanks, and all the best.

A reminder to all the participants, anybody who wants to ask a question, please raise your hand. In the meantime, Sriram, you can unmute and ask your question.

Sir, thank you for the opportunity. So, you know within the mobility space, what is the breakup between two wheeler passenger vehicle and CV? And then my second question is, we have other Bosch entities also which are unlisted, right , so for the EV business what will be our scope of work?

So, I will take up the first quarter, what we are not doing is that we do not have a segment reporting in this way. But we look at the automotive as the total.

My second question?

Yes, I think your second question is what two different Bosch group companies do. I think it's very obvious what they do. We have a company which is dealing with electronics outside of Bosch Limited. A large part of the electronics are positive business for us and they get supplied to us and then we take them to market . There is another company which is the chassis systems which deals with brakes which does direct breaking business to the market. So, these are the two big ones and there's some smaller ones, but that's how it is. In terms of electrification, the eAxles, which are the largest components in the eAxle business, will stay within Bosch Limited and that's how it is.

So, our scope of work is mainly eAxles, right?

Yes, that's correct. And eAxle as a product includes everything.

Okay. So, the motor controller and other parts, that will be sourced from electronics or how does it work.

Yes. So, electronics will continue to get sourced, but as an eAxle, we will have the complete ownership at Bosch Limited.

Okay, that helps. Thank you, sir.

Yes. So as far as we know , from the industry there is, I mean, from the government there is no change in the date of implementation, that stays as it is. We from our side are prepared to roll it out as soon as the dates are sort of confirmed . A nd as of now, we do not have any further information of any change of dates . Although it looks more and more certain that the current dates may not happen, so we are also crossing our fingers that rates do hold on and happen as planned.

Yes. Sir, one more question is on the exports. Considering the current volatility in the global markets, so do we see any more opportunity coming up for us?

Yes, I will start and maybe Karin can add on. See, this is a very dynamic situation and all of you are as exposed to the dynamics as we are with regard to what is happening with tariffs and how things are changing on a daily, weekly basis. So, we are monitoring this very closely. And eventually what matters most is what is the landed cost and how is that making your benefit to the customer. And this is something we monitor within the Bosch Group and for our customers very closely. With this said , there are opportunities coming up all the time and we will continue to capture those opportunities and enlarge on them. But there may also be some short-term uncertainties in terms of how this goes . And we hope in the coming months the tariff things are better settled. There are multiple FTAs on the cards for India. There is a trade deal likely with the EU and the US coming up. We just ha d a trade deal done with the UK. So, there are many of these things which are in the works. And we will have to look at all these things holistically and then see how the market abroad works. A nd then take calls on what is best in terms of landed cost for customers when we think of exports out of India. So, as we have said repeatedly, exports is a high priority for us, we certainly want to do more from India. And we will monitor this closely and continue to enhance on this. You want to add anything else?

Yes. And as you mentioned before, the NOx line for example, the new one, here we have the new chance export business we have in the spark plugs, the export business and we see overall, also for the next year a slight increase in the export business. We also have injectors where we are on export already. So, overall, we will see for the next year a slight increase. Most important for us, as Guru mentioned is, we have everything in place also to be ready for export , process wise as well as from the quality, and of course also most important is for us the competitiveness. But we will see a slight increase.

A reminder to the participants, you can raise your hands if you have a question. So, the next question is from Iqbal Khan, you can unmute and ask your question.

Yes. Hi. So, congratulations for a very good set of results. Sir two questions , one on eAxle , which you just spoke about. So, for this eAxle, do you have orders in place from any of these OEMs? And if you can highlight more about this? And second question, is, this quarter the sales performance that you have done , superb performance. And largely, I believe it is contributed by tractors, passenger cars and also the two- wheeler things. So, I mean, what I sense is, it would be because of the anticipation of this overdue norms. B ut do you think that going ahead would this be sustainable? I wanted to check the probability of how sustainable would this be going ahead. So, these are the two questions.

Yes. So, on the eAxle, as I have said before, we are working with all the OEMs, talking to them, and looking at their platforms. We are in several stages of negotiation with different OEMs, and I cannot be more specific than that in a forum like this right now. As and when we close the commercials or we are ready to announce, we will certainly come back to you and update you on the deal closures. On the revenue, Karin?

So yes, we had a very good revenue this quarter, and you should also be aware that within this revenue we see across in the sales of our products . But we had have also closed in this quarter one big application service project which you can also see reflected in the other expenses, because the cost part of this revenue coming out of services or in this case a big project is reflected in the other expenses. Therefore , you see a higher percentage in the higher expenses also in this quarter. So t herefore, it is a balance out of we close big project in this quarter, but we also had very good sales of our production.

Thank you. That was helpful.

Welcome. Sir, I am reading out a question from the question box. So, this dividend, we have been increasing for the last two, three years, so what will be the dividend distribution policy?

So the dividend distribution policy, which we also publish on our home page, but perhaps to give you a little bit more background regarding how do we look at the year and how do we want to appreciate also our shareholders. We had in the F inancial Year '24-'25, we had really a very successful year. And as Guru already explained in the profit after tax , we had an exceptional item in the last year, so, therefore. But if you look at the EBIT and the profit before tax, you can see the performance of the company. So therefore, if I look at or if we look at Bosch Limited overall, we had a very successful year, 8.1% revenue increase in the operations, EBIT growth from 10% to 10.7%. We have a stable or a good market outlook. So on the other side, we also know how the overall world market had a decreased in the shares in the market. And looking into the future, we also see our balance sheet. We also have strong balance sheet, nearly debt free, substantial liquidity. So, we are in a very strong position to make the right investments, strategic investments in the future . And therefore, we decided we would like to appreciate our shareholders in this year. And therefore, this was then the decision that this should be also reflected in the dividend for our shareholders.

So, the next question is on the hydrogen engine , so we have been working with a major Indian OEM on hydrogen engines, so what are the current update?

Yes. I mean, we have been working with almost all OEMs and also quite a lot of non-mobility players, and even ecosystem players on the hydrogen topic. And that work continues. There is still quite some things to do on the hydrogen ecosystem development , as you are all familiar. I think that work continues in terms of electrolyze developments, hydrogen generation possibilities, cost optimizations on hydrogen. Then distribution of hydrogen pumping and bringing hydrogen to the right level. So, all this work is still in the thought process or in the works. So, this is ongoing. And from our side, the technology is maturing, and we are offering our solutions and we are maturing our solutions together with our OEMs continuously. The work we do with our OEMs is quite advanced and that is going quite well is what I can say right now.

For the next two to three years, other than the industry growth, what will be our growth drivers?

Yes. So, this we have said couple of times, I think we always aim to grow beyond the typical industry growth rates driven by primarily topics like premiumiz ation which help us get into advanced technologies which get introduced. Are there new trends that are coming in the market, either through regulation or through enhanced application of technology, t hat's something that we will continue to go further. We will continuously work with OEMs on successful introduction of new norms which h as been continuously happening. That's something we will work on . Electrification, of course, is an area which is constantly on our focus and where we hope to have good breakthroughs in the coming years as well.

Have we received any new orders on electric two wheelers or three wheelers?

Electric two wheelers, no, we have not received any new orders as such on electric two wheelers. The current order book continues as is.

On three-wheeler, sir?

So, if there's anything, we will certainly update you.

I think there are no more questions. Anybody has any question, please raise your hand or you can type in the chat box. There are no more questions, sir. So, we thank all the participants. Do you want to make any closing comments, sir?

No, I think I would just like to firstly thank everyone for the participation. That's one . And we have had a good quarter in my view. We are looking forward to continuing this growth story and further keeping our growth momentum intact , while also maintaining consistent cost optimizations and the drive towards cost efficiencies and pressure on ourselves so that we are staying on top of the game. We want to enter as many new areas with customers as possible, and be the leading supplier t o OEMs and stay on top of the race . And this is the endeavor that we have and we continue to do that all the time. So , I can assure you that our path towards continuous improvement in the company will continue on a very, very steady pace as we go further.

Thanks, sir. We thank Bosch management for taking time out for the call. We thank all the participants. We can disconnect our lines. NOTE This document is a transcript and may contain transcription errors. This transcript may not be 100 percent accurate and may contain misspelling and other inaccuracies. While the transcript has been edited for clarity, the Company takes no responsibility for such errors.