Bosch Limited
REVENUE FROM OPERATIONS:
Revenue from operations: INR 43,168 million (+3.8% YoY)
EBITDA: INR 5,197
EBITDA: INR 5,197 million (+11.1% YoY)
PROFIT AFTER TAX:
Profit after tax: 10.8% of total revenue (+1% YoY)
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Financial Performance
The revenue from operations in April-June '24 stood at INR43,168 million, which is a growth of 3.8% over April-June 2023.
This growth is attributed to the Mobility Aftermarket, Power Solutions business, and Consumer Goods business, indicating a diversified revenue stream.
EBITDA in April-June '24 was INR5,197 million, which grew by 11.1% over the same quarter of previous year.
The improvement in EBITDA margin from 11.3% to 12% reflects operational efficiency and cost management.
Profit after tax in absolute terms grew by 13.8% in April-June '24 over the same quarter of previous year.
This growth in PAT indicates strong operational performance and effective cost control measures.
Business Operations
The Mobility business has grown by 4.1% in April to June '24 as compared to April to June '23.
This growth is driven mainly by the Mobility aftermarket business, which grew by 8.1%, indicating strong demand for new generation diesel components.
The 2-wheeler segment exceeded expectations with 20% growth in Q1 FY '25 driven by the revival of rural consumer sentiment.
This growth reflects a positive shift in consumer behavior and market dynamics, particularly in rural areas.
Growth Initiatives
In April 2024, we inaugurated our second production line for Lambda Sensors at our Bidadi plant to address the rising demand.
This expansion is in response to regulatory changes and increasing demand from major OEMs, positioning Bosch as a key player in the market.
The budget aims to encourage companies to set up battery manufacturing plants in India and invest in battery technology.
This initiative aligns with the government's focus on infrastructure and job creation, which could significantly benefit the automotive sector.
Market Dynamics
Hydrogen engine technology is gaining recognition globally as a viable zero-emission vehicle powertrain.
This trend indicates a shift towards sustainable transportation solutions, with Bosch at the forefront of this innovation.
Future Outlook
Looking ahead to FY '25, moderate growth is expected due to the election year factor and high base effects.
This cautious outlook reflects the potential impact of political dynamics and previous year's performance on market growth.
Heavy commercial vehicles experienced modest growth of 3% on a high base in Q1 FY '24, and a slowdown in infrastructure and construction activities.
This highlights the challenges posed by the transitional period for the newly elected government, affecting market performance.