Bosch's Q4 PAT declines 80% yoy, sales disrupted - MD Bhattacharya reveals FY21 outlook

In FY20, the company made a provision of Rs717cr, towards various restructuring, reskilling and redeployment initiatives.

May 22, 2020 10:05 IST India Infoline News Service

Bosch Ltd.
The auto component-major Bosch during March 2020 (Q4FY20) quarter witnessed a whopping 80.43% decline in consolidated net profit to Rs81.14cr compared to Rs411.76cr a year ago same period.

In the quarter, total income was at Rs2377.28cr down by 18.1% against Rs2892.50cr in the similar quarter of the previous year.

For the fiscal FY20, the company made a provision of Rs717cr,  towards various restructuring, reskilling and redeployment initiatives.

The company's Mobility business sector declined by 24.4% in 2019-20, due
to slowdown in the auto segment. Domestic sales declined by 25.9% and
export sales declined by 6.1%.

In a meeting held on Friday, the company's board has recommended a dividend of Rs105 per share for these twelve months.

FY21 outlook:

Soumitra Bhattacharya, Managing Director of Bosch Limited said, "Bosch has a long term strategy to shape the market in key technologies with innovative products and solutions. Bosch Limited thus continues its stance to be a technology-agnostic partner to Customers, Government and Stakeholders at large. Since 2017, Bosch has executed 79 BS-VI projects in Passenger Cars and Commercial Vehicles segments with major OEMs"

Amidst the crisis, Bhattacharya added, "Bosch in India will continue with critical investments in competence development as well as for solutions designed and developed in India and for India. For all Bosch businesses beyond Mobility Solutions, the company has a two-pronged approach. On the one hand, Bosch continues to bring-in ‘Fit for market’ products and solutions while on the other, the company will increase its ‘Go to Market’ footprint using both offline and digital platforms."

" We are still awaiting to receive further guidance on an industry-specific stimulus package that will support the auto sector,” said Bhattacharya.

Stock price:

On Sensex, the Bosch's stock price ended at Rs9559.45 per piece up by 2.29% post Q4 announcement.

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