Bosch Ltd's Q2FY19 standalone net profit rises 19% yoy to Rs420cr : In-line with Estimates

The company’s standalone revenue stood at Rs3,201cr, up 14% yoy but down 0.34% qoq.

Nov 05, 2018 02:11 IST India Infoline Research Team

Bosch Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 3,201.11 13.8
EBITDA 596.24 17.4
EBITDA Margin (%) 18.6 56
Net Profit (adjusted) 419.99 18.9
***EBITDA margin change is bps

Results for Bosch Limited (Bosch) were in-line with street estimate in Q2FY19 at all three levels – revenue, EBITDA and PAT. Standalone revenue came in at Rs3,201cr, up 14% yoy (flat qoq). Despite the inflationary input cost environment prevailing currently, Bosch kept a strict control on operating costs. Consequently, EBITDA margin expanded 56bps yoy (contracted 93bps qoq) to 18.6%. Absolute EBITDA was 17% yoy higher (5% qoq lower) at Rs596cr. Bosch reported standalone PAT of Rs420cr, up 19% yoy (down 3% qoq).

Other Highlights
  • Within segments, the automotive products segment, which contributes 86% to total revenues, saw revenue growth of 14% yoy (1% qoq), while other business revenues (14% of total revenues) grew 16% yoy (declined 5% qoq).
  • Raw material expenses were higher due to adverse effects of foreign exchange rates on materials imported.
  • Turnover for Mobility Solutions business was up 12% during the quarter, Powertrains Solutions up 10% yoy and automotive after market was up 21% yoy.
  • Company’s business other than mobility solutions grew 14% yoy led by Energy and Building Technology sector and the Power Tools division.
  • Board of Directors approved buyback of 10.28 lakh equity shares at a price of Rs21,000 per equity share.

Conference Call Highlights
  • Bosch has reduced employee expenses as % of sales to 10-11% levels from 14-15% level seen few years back. This has been achieved by reducing headcount. The company aims to keep the expenses head at this level going ahead.
  • Bosch’s parent company will undertake capex of Rs1,700cr through FY21 in India of which, 75-80% will be through the listed entity, Bosch Limited.
  • The management stated that it was cautiously optimistic on the Indian market for FY19E.
  • The increase in raw material cost during Q2FY19 (up 156bps yoy, 226bps qoq as % of sales) was caused by higher import cost and forex movement.

Technical View:

Bosch Ltd is currently trading at Rs. 19,441.35, down by 184.3 points or 0.94% from its previous closing of Rs. 19,625.65 on the BSE.
The scrip opened at Rs. 19,979 and has touched a high and low of Rs. 19,979 and Rs. 19,311.40 respectively. So far 52,365 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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