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MOTORINDIA
l
April 2012
Bosch Ltd.
registers 20% growth
in sales and income
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 eco-
nomic growth due to tight liquidity,
high interest rates, increase in fuel
prices and overall adverse market
sentiments.
Profit before tax witnessed an im-
pressive 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 finan-
cial results, Mr. V.K. Viswanathan,
Managing Director, Bosch Ltd.,
said: “Despite rising interest rates
and fuel prices, we witnessed im-
proved demand in certain sectors of
the automotive industry such as trac-
tors 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 busi-
nesses we have been able to register
a robust growth of about 20 per cent
in 2011”.
Commenting further on capital
expenditure, Mr. Viswanathan add-
ed: “We are confident of a slow but
steady rebound in the economy lead-
ing to an improvement in the auto-
motive sector. Bosch Ltd. is geared
to capitalize on this opportunity and
serve all market segments with in-
novative product offerings and so-
lutions. We have invested nearly
Rs. 660 crores in 2011 for capacity
expansion and other activities in In-
dia.”
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 de-
spite subdued demand in the latter
part of 2011. Automotive aftermar-
ket 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 re-
spectively over the previous year.
The Packaging Technology Divi-
sion 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 spe-
cial dividend of Rs. 85 per share
paid in June 2011.
w
component zone
Mr. V.K. Viswanathan
Managing Director, Bosch Ltd.
In his concluding remarks, Mr.
Viswanathan said that Bosch is
strongly committed to India not
only on the technology and manu-
facturing front but also in the ar-
eas of corporate social responsi-
bility. It is engaged in a variety of
CSR activities ranging from adop-
tion of schools in remote areas,
healthcare, environment protection
& awareness, flood & earthquake
relief and futuristic scientific re-
search program with the Indian
Institute of Science, Bangalore,
among many others.