Bosch Limited (Bosch) reported an in-line set of numbers at revenue and PAT levels and a marginal miss at the operating level. Standalone revenue in the period was up 21% yoy (up 2% qoq) at Rs3,212cr, in-line with the consensus estimate. Strict control on raw material expenses and lower operating and employee expenses (as % of sales) propelled EBITDA 43% yoy (down 9% qoq) to Rs628cr. EBITDA margin, meanwhile, expanded 298bps yoy (contracted 243bps qoq) to 19.6%. EBITDA and EBITDA marginally missed the consensus estimate of Rs654cr and 20.6%, respectively. Standalone PAT was 42% yoy higher (lower 18% qoq) at Rs431cr, in-line with the estimates.
Automotive segment revenue was up 10% yoy (0.5% qoq lower), while revenue from other segments surged 36% yoy (up 15% qoq).
Bosch has been aggressively undertaking localization of components, which has led to the margin improvement. Secondly, content per vehicle has gone up post introduction of BS-IV vehicles, which further helped the operating performance. Q4 is a seasonally strong quarter for Bosch on the margin front, hence sequential margin erosion was imminent.
The BS-IV-led margin expansion was evident in the Q1FY19 numbers as EBIT margin for automotive segment expanded 660bps yoy to 20.5%.
Bosch Ltd share price is currently at Rs19,492.60, up Rs372.85, or 1.95%, from its previous close of Rs19,119.75 on the BSE. The scrip opened at Rs19,197.45 and has touched a high and low of Rs19,824.95 and Rs19,197.45, respectively. So far, 42,190 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.
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