Bosch Ltd. has registered a net sales growth of 10 per cent in the first quarter of 2012 compared with the same period last year despite a sluggish economy, a noticeable slowdown in the automotive industry and continuing challenges in the export market, mainly in Europe.
Net sales and income from operations stood at Rs. 2,267.5 crores in this quarter, resulting in subdued growth mainly on account of lower sales in commercial vehicle and tractor segments.
The Diesel Systems business witnessed a relatively lower growth of 3.8 per cent compared to the same period last year due to decline in the tractor market and de-growth in the export market. The starter and generator business posted an impressive growth of 75 per cent.
The introduction of new base line alternators in the second half of 2011 for inland and export customers enabled the division to post higher growth.
The Automotive Aftermarket and Power Tools Division continued with healthy double-digit growth of 13 per cent and 15 per cent respectively compared with the same period last year. The Packaging Division has grown by 61 per cent due to higher export projects executed in this quarter, while the Security Technology Division posted a growth of 20 per cent.
Export sales registered a slow growth of 3.3 per cent during the period as compared to the same period of 2011, due to weak demand in the European region.
Announcing the financial results, Mr. V.K. Viswanathan, Managing Director, Bosch Ltd., said: “The business conditions are quite challenging, particularly for the auto industry, due to varying levels of performance in different segments. The prediction of normal monsoon combined with expectation of falling inflation and declining interest rates, gives us reasonable optimism for satisfactory performance of the company in 2012”.
Despite the negative impact of sharp rupee depreciation, profit before tax grew by 19 per cent compared to the same period last year, primarily due to better cost management and higher treasury income. Profit after tax at Rs. 336 crores registered a strong increase of 22.4 per cent, reflecting another quarter of solid performance.