1.4 percent of growth for Bosch Limited

Bosch Limited, a leading supplier of technology and services, registered a growth of 1.4 percent to Rs. 8,641 crores from net sales and income from operations for the year ending December 31, 2013. Profit Before Tax (PBT) was at Rs. 1,257 crores, while Profit After Tax (PAT) stood at Rs. 885 crores. Exports grew by 12.5 percent to Rs. 1,058 crore over 2012.

Announcing the company's financial results, Dr. Steffen Berns, Managing Director, Bosch Limited said, “The prolonged slowdown of the automotive industry in 2013 coupled with weak consumer demand has impacted the overall industry as well as our growth. Our non-automotive business has been doing very well with its share increasing steadily as we continue to expand our operations in this sphere.” Adding further, he elaborated, “Our cumulative measures on cost control throughout this year helped us to limit the decline in profitability despite the unutilized capacity.” In view of the company’s results, the Board of Directors recommended a dividend of Rs. 55 per share for 2013.

Snapshot of business divisions’ performance:

Having fared comparatively better than the Indian automotive market, which declined by three percent on the production volume (without 2-wheeler segment), automotive business of Bosch Limited registered a marginal decline of 0.7 percent. 

Diesel Systems was affected by the insistent decline in the domestic sales of commercial vehicles and passenger cars. However, the division retained its market share despite this extended slump, while the division of Gasoline Systems grew moderately.

Starter Motors and Generators registered double-digit growth driven by the significant increase in domestic sales and exports of the New Base Line Generators. Automotive Aftermarket had a low growth owing to the slowdown and tough market conditions.

Commenting on the performance of the automotive sector, Dr. Berns added, “During these tough times, with the support of our associates and management team, we have been able to remain competitive and profitable. Overall, we are positive of the mid- and long-term growth prospects. In particular, we expect to see the situation improve following this year’s general elections.”

Non-automotive business on a growth trajectory:

The non-automotive business grew by over 19 percent, reflecting the company’s efforts in this business area. Power Tools and Packaging Technology division registered double-digit growth for the year 2013.

The business of Energy multiplied on a lower base. As this business offers enormous growth potential in India, the company today announced the launch of a new business unit ‘Bosch Energy and Building Solutions India’ that will focus on end-to-end energy generation and efficiency.

Expanding company’s broad-based footprint

In his concluding remarks, Dr. Berns said, “India continues to play a key role for the Bosch Group. Based on our long history in India, we are committed to expanding and strengthening our already broad-based footprint here. Last September, we broke ground in Bidadi on a new manufacturing unit for diesel injection components. This year, we will be further augmenting our existing facility at Adugodi which will be transformed into a state-of-the-art R&D hub. We also look upon ourselves as a responsible corporate citizen both through our products and solutions as well as through our manifold CSR activities, including the Bosch India foundation, diverse neighborhood programs or our training activities. All this contributes to the sustainable betterment of society.”