Bosch Ltd. has registered net sales and income from operations of Rs. 8017.9 crores with a healthy growth of 19.7 per cent for the year ended December 31, 2011. Continuing the positive growth momentum from 2010, growth was upbeat in the first half of the year 2011. However, growth rates declined in the last two quarters on account of slowing economic growth due to tight liquidity, high interest rates, increase in fuel prices and overall adverse market sentiments.
Profit before tax witnessed an impressive growth of 30.9 per cent over 2010 and stood at Rs. 1,574.0 crores. Profit after tax stood at Rs. 1,122.6 crores resulting in a growth of 30.7 per cent over the previous year.
Announcing the company’s financial results, Mr. V.K. Viswanathan, Managing Director, Bosch Ltd., said: “Despite rising interest rates and fuel prices, we witnessed improved demand in certain sectors of the automotive industry such as tractors and light commercial vehicles. At Bosch, we have been successful in catering to the demands of these segments. With consistent growth in aftermarket and power tools businesses we have been able to register a robust growth of about 20 per cent in 2011”.
Commenting further on capital expenditure, Mr. Viswanathan added: “We are confident of a slow but steady rebound in the economy leading to an improvement in the automotive sector. Bosch Ltd. is geared to capitalize on this opportunity and serve all market segments with innovative product offerings and solutions. We have invested nearly Rs. 660 crores in 2011 for capacity expansion and other activities in India.”
The introduction of new base line alternators for the export and inland OE segments enabled the starters and generators division to register a growth of 63.1 per cent in sales over 2010. Diesel Systems business grew by 19.2 per cent over 2010 mainly contributed by strong demand from the LCV and tractor segments despite subdued demand in the latter part of 2011. Automotive aftermarket business grew by a solid 15.2 per cent.
The Power Tools and Security Technology divisions continued on the growth path with a sales increase of 22 per cent and 18.4 per cent respectively over the previous year. The Packaging Technology Division grew by 40 per cent, albeit on a low base, due to higher export sales.
Exports business overall grew impressively by 22.3 per cent to cross the Rs. 1,000-crore mark on the back of a strong demand from export markets in Germany, China, Brazil and Korea.
In view of the company’s strong results, the Board of Directors has recommended a higher dividend of Rs. 50 per share as against Rs. 40 per share announced for 2010. This is over and above the one-time special dividend of Rs. 85 per share paid in June 2011.
In his concluding remarks, Mr. Viswanathan said that Bosch is strongly committed to India not only on the technology and manufacturing front but also in the areas of corporate social responsibility. It is engaged in a variety of CSR activities ranging from adoption of schools in remote areas, healthcare, environment protection & awareness, flood & earthquake relief and futuristic scientific research program with the Indian Institute of Science, Bangalore, among many others.