Bosch Ltd. posted net sales and income from operations of Rs. 2,355 crores in the second quarter of 2014, registering a 3.6 per cent increase over the same period of the previous year. Domestic sales increased by 2.4 per cent and export sales by 17.4 per cent over Q2 2013.
Profit before tax at Rs. 439 crores increased by 19.8 per cent, while the profit after tax stood at Rs. 307 crores, resulting in a growth of 21.9 per cent.
“Our sales still have been subdued in the second quarter of 2014, mainly due to limited consumer demand, tight liquidity in the market and reduced levels of activity around the period of general elections. While the third and fourth quarter of 2014 will remain challenging, we believe that the consumer sentiment and markets are heading in the right direction. At Bosch, we hope this will trigger tangible and sustainable growth in the coming quarters,” said Dr. Steffen Berns, Managing Director of Bosch Ltd., announcing the second quarter results.
The company’s automotive business in India, which constitutes a major portion of its revenue, grew moderately by 2.8 per cent. This is above the overall Indian automotive market, which stayed flat in the second quarter. Owing to weak markets the company’s non-automotive business overall performed below expectation with only a marginal growth.
Bosch Ltd.’s efforts towards improving operational efficiency, budget control and material cost led to higher operating margin, but adverse factors such as inflation still remain a concern. “We continue to focus on innovations to sustain our success in the future. Our expansion plans are on course and we are prepared for the much-awaited revival of the economy,” stated Dr. Berns.