Bengaluru-based Bosch Limited, a leading supplier of technology and services, posted a total revenue from operations of Rs 11,690 crores (1.55 billion euros) in the past 12 months, registering 12% increase over the same period of the previous year on a comparable basis.
“Bosch Limited’s domestic sales have been growing steadily as India’s automobile sector shows promising growth in the future,” said Soumitra Bhattacharya, Managing Director, Bosch Ltd.
In India, Bosch Limited is the flagship company of the Bosch Group which has its global headquarters in Stuttgart, Germany.
Positive business development across key sectors in 2017-18
Bosch Limited’s Mobility Solutions business sector increased by 15% in 2017-18. Domestic sales increased by 14.8%, outperforming the domestic automotive market, which posted a growth of 10.8% in the same period. Export sales increased by 16.8%. Within the Mobility Solutions business, the Powertrain Solutions business division registered a strong double-digit growth of 19.4%.
Considering the company’s performance, the Board of Directors recommended a dividend of Rs 100 per share for this twelve-month period.
Results for the quarter ended March 2018
The company posted total revenue from operations of Rs 3,158 crores, an increase of 22.7% over the corresponding quarter of 2017. Profit before Tax (PBT) for the current quarter stood at Rs 724 crores before exceptional items, a 9.2% increase compared to the previous quarter. The increase in profit is mainly caused by higher sales volume and increased operational efficiencies offset by higher material cost due to product mix change.
The Mobility Solutions sector posted a healthy growth of 23.1%. The strong performance by the divisions Power Tools, Building Technology as well as Energy and Building Solutions has helped the business beyond Mobility Solutions to grow by 22.4%.
Outlook 2018-19: Strong growth under optimistic market conditions
Speaking about the outlook for the upcoming financial year, Bhattacharya said: “The automotive industry in India accounts for 7.1% of the country's gross domestic product. This is expected to increase in the future as well, as India gears up to achieve BS-VI implementation from April 2020 and adopt electro-mobility solutions built for Indian conditions. With such an optimistic market outlook, Bosch is confident of continuing its strong revenues in future.”
Looking beyond mobility, a major portion of Bosch’s activities focus on building effective solutions for a connected future. This includes using big data for energy compliant processes, deploying digital solutions to get power tools into the hands of more tradesmen and securing hubs of urban movement such as airports and metro stations with smart surveillance solutions, among other initiatives.
Continuous investment: Development of manufacturing locations
During the past 12 months, major investments were made towards the development of new products and at facilities of Bosch Limited in Bidadi and Nashik. Overall, the company made capital investments of around Rs 460 crores in 2017-18. “India is a priority market for Bosch and the investment has been consistent. We will continue to make investments of similar nature in the current financial year,” said Bhattacharya.
Bosch Group: Global strategy and business outlook for 2018
The Bosch Group is a leading global supplier of technology and services. Bosch is aiming for further growth in 2018, despite the difficult economic climate. After achieving record results in 2017, and in light of economic and geopolitical risks, the Bosch Group expects its sales revenue to grow by 2 to 3% in 2018.