Bosch Limited

NSE:BOSCHLTD
Q4 FY2024 2024-05-27
REVENUE: INR 1,67,271
Revenue: INR 1,67,271 million, up 12% YoY
EBITDA: INR 5,572
EBITDA: INR 5,572 million, up 6.7% QoQ
PAT: INR 24,905
PAT: INR 24,905 million, up 41.4% QoQ
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VI
Viraj
6 questions
AN
GO
Gokul Maheshwari
4 questions
JI
Jinesh Gandhi
4 questions

This business was largely doing documentation and wiring for OEMs, but we see little growth in the upcoming years as the business is moving online. The integration into ETAS in India was deemed the right decision as the future of diagnostic applications will be more software-heavy, which OEMs will handle. This business was a relatively small part of the mobility aftermarket division, and we do not foresee growth in this area.

Guruprasad Mudlapur •

Bosch has a full range of products for the hybrid market, including hybrid energy batteries and systems for different classes of hybrids. We are currently in discussions with several Indian OEMs and have been involved with the Toyota hybrid system. We believe there is a limited time window for hybrids before full battery electric vehicles become more prevalent.

Guruprasad Mudlapur •

We have always believed in localization for the Indian market and have made substantial investments in it. In some product classes, we are nearly 90% localized, while in others, we aim to increase localization from 30% to 90%. We do not worry about localizing in India and have always done it in line with what is justified, regardless of subsidies. Our OEMs support this goal.

Guruprasad Mudlapur •

Without giving you a guidance, of course, whenever you have a localization, we are not doing localization because of localization, but in the end, of course, we would also like to see the result in our figures.

Karin Gilges •

We are looking at an overall portfolio restructuring internally, not just in India but also at Bosch globally. Some parts don't belong within Bosch Limited and it's better to focus on topics that are more relevant for the future.

Guruprasad Mudlapur •

We have a very good ramp-up of the line of the assembly. We are going ahead with the localization of third-party suppliers for raw materials. Overall, localization is ongoing, and it's crucial that the commercial vehicle market will grow.

Karin Gilges •

We expect SOP, the start of production in April '25. These are quite complex lines, but it's on the way.

Karin Gilges •

Current indication is April '26 for TREM V introduction. We hope that standard does not get pushed. Capacity is available, and we will start with a fairly good level of localization.

Guruprasad Mudlapur •

Financial year to financial year, we see an improvement coming from EBIT improvement. The investment you referred to is below EBIT and EBITDA. The EBITDA reflects the operational development in profit.

Karin Gilges •

Exports currently for FY '23-'24 stood at 8.1% of total net sales. We are working on increasing this over the coming years, linking it to our localization approach.

Guruprasad Mudlapur •

The OBD 2.2 norms should be applicable in 2025, and it will be an upgrade for the OEMs.

Guruprasad Mudlapur •

Hydrogen ICE is currently undergoing design maturity phase. We expect between 10% to 15% of all trucks sold by 2030 to be with hydrogen ICE technology.

Guruprasad Mudlapur •

We don't have a number on that segmentation, but we are continuously increasing our EV share and are in serious conversations with several OEMs on electrification.

Guruprasad Mudlapur •

I would not speculate at this point of time on anything. These are portfolio discussions that are currently ongoing, and we will keep you updated as things develop. No, I wouldn't put a time line on it. I would say this is an ongoing portfolio realignment overall. And yes, if I were to give you a broad time line, then maybe it's the next 1 year. We will see some amounts of portfolio readjustments continuing to happen.

Guruprasad Mudlapur •

On an average, we've had a capex of between INR300 crores to INR600 crores year-on-year. This is something that is needed year-on-year for us both to include localization and other capex. The growth of FY '23-'24 is something that we are looking forward to also in the upcoming year. The first quarter could be a little slow because of the election effects. We have seen that already in the market right now. And there is also a little bit of a liquidity crunch for some of our businesses in the market. And these things should be resolved by June. And after that, we expect a very good year for the rest of the year. Overall, we see continued improvement in our margins and performance as we move forward.

Guruprasad Mudlapur •

We have a lower spending related to the new business, which we hived off. On the other side, we also put in place cost measures, which are sustainable. We are working further on the other expenses because we see this also as a very important topic to our competitiveness and profitability. We were in April, March 2024 on a 14.7%, comparable in '23, 16.8%. So besides the lower spending and some more costs variable due to the growth, we also see that our cost measures are well fit in the base now.

Karin Gilges •

There's actually no new view on the investment. Localization is a key also in third-party supplier development as well as in our own plant. Therefore, there is no change. Localization and investment, what we have to invest, we invest.

Karin Gilges •

We've estimated that our capex requirements will be in the region of INR400 crores to INR600 crores.

Guruprasad Mudlapur •

There is certainly a plan that's being worked on. And as soon as we are clear with it, we will let you know.

Guruprasad Mudlapur •