Despite a tepid second half of 2011, auto parts maker Bosch Ltd's net profit rose 33.5 per cent to Rs 281 crore during the fourth quarter largely due to higher income from treasury operations and flat material costs.
Bosch's Managing Director, Mr V. K. Vishwanathan, said, though the company expects to invest about Rs 700 crore during the current calendar year — which is its fiscal year as well — much depends on the Government's decision on whether it will impose a levy on diesel passenger cars during next month's central Budget. “Going forward, there is a lot of uncertainty in the market,” he said.
For the fourth quarter, Bosch's net sales and income from operations grew 11 per cent to Rs 1,951.80 crore. The company also declared a dividend of Rs 50 per share which is in addition to the special dividend of Rs 85 per share declared in June 2011. He said wage costs have gone up by about 11 per cent while the next wage agreement will fall due in December this year.
The capital expenditure for this year is part of the Rs 2,200-crore investment announced this January. The rest of the investment will go towards capex for the next year, as well as for other six other entities under the Bosch Group in India.
For the entire year, Bosch Ltd's net profit grew nearly 31 per cent to Rs 1,123 crore because of a strong first half showing. Its net sales and income from operations grew nearly 20 per cent to Rs 8,017.9 crore. Of this, Rs 4,700 crore came from diesel business, Rs 1,800 crore from after-market, Rs 490 crore from starters and generators and Rs 550 crore from power tools.