Bosch

In the quarter ended Sep 2011, Bosch - the flagship of the Bosch Group in India exceeded the market expectation with 22% growth in net profit to Rs 288.10 crore aided by favorable non operating performance though impacted at operating level due to increased costs. The operating income grew by 16% to Rs 1991.31 crore. However increased input costs, adverse forex movement and product mix led to 40 bps fall in operating profit margin (OPM).

Quarter Performance

The operating income grew by 16% to Rs 1991.31 crore in Sep 2011 quarter reflecting the sales of automotive segment. The automotive sales grew by 15% to Rs 1783.97 crore aided primarily by impressive growth in starter and generators (by 73%), diesel (by 13%), automotive aftermarket (13%) though moderated by fall in gasoline products (by 30%) due to low offtake in petrol product of Tata Motors and strike at Maruti Suzuki. The sales of others grew by healthy 31% to Rs 210.61 crore. Out of the net sales, total exports grew by 11% to Rs 287.7 crore. Quarter on quarter, the topline fell by 3% due to slow down in Sep 2011 quarter in comparison to June 2011 quarter.

Higher expenses across the board (except for other expenditure) led to 40 bps fall in OPM to 19.3%. Thus the operating profit grew by constrained 14% to Rs 384.91 crore. Raw material costs, as % to sales net stock adjusted, grew by 50 bps to 34% on adverse forex, product mix and increase in input cost. Also the cost of traded goods increased by 120 bps to 19%. The staff cost increased by 150 bps to 11% on rise in staff, incentives and wage settlement. Only the other expenditure declined by 250 bps to 16%. Segmentwise, the automotive products' PBIT margin fell by 90 bps to 18% thus its PBIT grew by limited 9% to Rs 319.26 crore. On the other hand, others' PBIT margin grew by robust 460 bps to 12% aiding whopping 113% growth in its PBIT to Rs 25.20 crore.

The company's PBT grew by 22% to Rs 405.79 crore on overall favorable non operating side. The other income grew by whopping 106% to Rs 39.43 crore on account of higher profit from marketable securities. Also the interest income rose by robust 46% to Rs 45.48 crore due to rise in interest rate of fixed deposit by 400 bps. The depreciation cost grew by 17% to Rs 64.03 crore on increase in capital expenditure and asset additions. The net profit settled with 22% growth to Rs 288.10 crore on 20 bps fall in effective tax rate.

Nine Month Performance

In nine months ended Sep 2011, the topline grew by 22% to Rs 6136.38 crore. The sales of automotive products grew by 23% to Rs 5467.58 crore while the sales of others rose by healthy 30% to Rs 641.23 crore. The total exports of net sales grew by 26% to Rs 796 crore. Increase in raw material costs led to 30 bps fall in OPM to 18.9%. Thus the operating profit growth was constrained to 20% to Rs 1157.63 crore. The PBIT margin of automotive products fell by 10 bps to 18% limiting its PBIT's growth to 22% to Rs 1003.56 crore. On the other hand, others' PBIT margin rose by 150 bps to 10% thus pulling up its PBIT by robust 53% to Rs 66.90 crore.

The company's PBT grew by 29% to Rs 1211.22 crore on overall supportive non operating performance. Further 30 bps fall in effective tax rate lifted the net profit by healthy 30% to Rs 841.42 crore.

• The promoters' share in the total shareholding stands unchanged at 71.18% in Sep 11 quarter. The promoters' have pledged 'nil' shares of the company.

Currently the scrip is trading at Rs 7160 on BSE.

Bosch: Company Results

Bosch: Segment Results