Bosch Limited

NSE:BOSCHLTD
Q2 FY2024 2023-11-09
REVENUE FROM OPERATIONS:
Revenue from operations: INR 41,301 million, up 12.8% YoY
PROFIT AFTER TAX:
Profit after tax: INR 9,989 million, up 168% YoY
MOBILITY SOLUTIONS SALES:
Mobility Solutions sales: up 11.7% YoY
AUTOMOTIVE AFTERMARKET GROWTH:
Automotive aftermarket growth: 10.2% QoQ
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VI
Viraj Kacharia
4 questions
PR
Pramod Kumar
Analyst
3 questions
GO
Gokul Maheshwari
Analyst
2 questions
JI
Jinesh
Analyst
2 questions

Post subsidy adjustments, the two-wheeler demand has recovered. We see consistent demand for EV cars in passenger segments. We will focus on our portfolio engagement in both segments and monitor the market for specifics on portfolio enlargement.

N Sandeep • MD

We see an increase in the share of traded goods affecting gross margins. Localization efforts, especially in heavy commercial vehicles, are underway, and we are planning further steps in exhaust gas treatment. However, improvements in gross margins will be midterm due to the complexity of technologies.

Karin Gilges •

For FY '24, we estimate a capex of 3.5 billion. For FY '25, we are in the middle of midterm planning.

Karin Gilges •

Yes, Bosch will be localizing EGT components, which will lead to a lower share of traded goods.

Karin Gilges •

The growth disconnect is due to a better performance in the premium segment of two-wheelers, where Bosch has a stronger presence, while the commuter segment is facing distress.

N Sandeep •

Bosch has qualified for the PLI scheme and plans to increase local manufacturing. Benefits will be shared with customers where required, but specifics are not finalized yet.

Guruprasad Mudlapur •

We see a slow recovery in the commercial vehicle sector after a downturn. Infrastructure investments will be crucial, and we will monitor the market closely.

N Sandeep •

The share of traded goods has decreased, but the mix and terms of trade have changed post BS-VI. Capex for localization is expected to increase significantly in the coming years.

Karin Gilges •

The extent of exposure depends on category to category. A vehicle manufacturer has more avenues for recovering cost impacts compared to a Tier 1 supplier like us. This will be a continuous challenge in the coming quarters.

N Sandeep •

The planned capex for 2024 is around 3.5 billion to 3.6 billion, mainly focused on our plants to support our localization strategy, including investments in machinery.

Karin Gilges •

We have a good liquidity position and are looking at both organic and inorganic growth opportunities. We are also monitoring market trends in electrification and hydrogen.

Karin Gilges •

The initiatives on personnel costs were right, and we are currently at 8.1% of revenues. However, material costs have increased due to the transition from BS-IV to BS-VI, and we are working on localization to improve margins.

Karin Gilges •

The global economic situation is challenging, with weak markets in Europe and the US. While exports are a chance, the current market conditions limit our ability to capitalize on them.

Karin Gilges •

We do not prioritize one over the other. Both hydrogen ICE and electrification are important, with hydrogen ICE expected to be deployed beyond 2026, while electrification is already present in some segments.

Guruprasad Mudlapur •

We offer a global portfolio of products and technologies to Indian OEMs, and we also customize these technologies as needed. We are working on adapting technologies like drive-assist and emergency braking for the Indian market.

Guruprasad Mudlapur •

Yes, once EGT is localized, it will be part of the listed entity's sales and margins, rather than being treated as traded goods.

Karin Gilges •