Bosch Limited

Bosch Limited's Q4 FY'23-24 financial highlights showcase a robust performance with a total revenue of INR 42,334 million, reflecting a 4.2% increase year-over-year. For the entire fiscal year, revenue reached INR 1,67,271 million, marking a 12% growth. The company's EBITDA for Q4 stood at INR 5,572 million, up 6.7%, while the EBITDA margin improved to 13.2%. Profit After Tax (PAT) surged by 41.4% in Q4, totaling INR 24,905 million, with a PAT margin of 13.3%. These results underscore Bosch's strong market position and operational efficiency in a competitive automotive landscape.

In FY '23-'24, the Indian automotive market demonstrated resilience, with overall vehicle production (excluding two-wheelers) increasing by 5% compared to the previous fiscal year. This growth solidified India's position as the third largest automotive market globally. Notably, passenger car production saw a double-digit growth of 11%, driven by strong demand for SUVs, while two-wheeler production surged by 27%, fueled by rural demand and urban replacement needs. However, challenges persisted in the commercial vehicle sector, which remained stagnant, and the tractor market faced a 15% decline due to erratic monsoon patterns affecting rural sentiment. Despite these challenges, the market concluded on a positive note, setting the stage for moderate growth in FY '24-'

In Q4 FY '24, the tractor market faced significant challenges, experiencing a 15% decline in sales. This downturn was primarily attributed to erratic monsoon patterns and low reservoir levels, which adversely affected rural sentiment, particularly in Central and Southern India. The tractor segment is highly sensitive to these factors, leading to reduced demand in a market already impacted by changing weather conditions. As a result, the overall performance of the agricultural machinery sector was negatively influenced, highlighting the importance of stable weather for sustaining sales in this segment.

The projected 6.5% growth rate for the Indian economy in 2024 is primarily driven by robust domestic demand and significant investments in infrastructure. Despite global economic challenges, these factors are expected to sustain India's economic momentum. Additionally, the automotive sector's resilience, highlighted by a 5% increase in vehicle production during FY '23-'24, further supports this optimistic outlook. The combination of strong consumer spending and strategic infrastructure projects positions India favorably for continued growth into 2025.

Bosch Limited is actively addressing the transition to alternate fuels in the automotive industry by pioneering innovative technologies and investing in key areas. Notably, the company has developed India's first hydrogen engine demo truck, showcasing its commitment to sustainable mobility solutions. Additionally, Bosch is enhancing its product offerings to support vehicle manufacturers in shifting from conventional fuels to low and zero carbon alternatives, including CNG and flex fuels. The company is also investing in Lamda sensor technology to comply with upcoming OBD 2.2 regulations, anticipating a significant increase in demand for advanced sensor solutions by 2025. These strategic initiatives position Bosch as a leader in the automotive sector's transition towards greener technologies.

Trends influencing consumer preferences in the passenger car segment, as reported by Bosch Limited, include a significant shift towards SUVs, which saw a double-digit growth of 11% in production during Q4 FY '24. Consumers are increasingly favoring premium vehicles with enhanced features, superior ride quality, and aesthetic appeal. Additionally, there is a growing demand for alternate fuel options, particularly strong hybrids and electric vehicles, reflecting a broader trend towards sustainability in automotive choices. This evolution in consumer behavior highlights a preference for higher-priced models and advanced technology in the passenger car market.