Bosch Ltd has reported lower profits at ₹287.45 crore for the quarter ending March 31, 2015, down 11.9 per cent.
Total income from operations for the quarter is also lower by 2.25 per cent at ₹2,388.86 crore. EPS stood at ₹91.5 as against ₹103.9 recorded last year.
The company has changed its financial year from January until December to April until March. Consequent to this, the current financial year is for the period of 15 months from January 2014 until March.
“The reduction in profit is mainly due to higher depreciation on higher asset base and change in taxation for marketable securities. This effect has been partly offset by effective measures to control cost,” said Dr Steffen Berns, Managing Director, Bosch Ltd.
Within the segment of mobility solutions, revenue for Gasoline Systems (GS) and Starters and Generators (SG) divisions has grown significantly.
Weak marketHowever, this could not fully compensate the decrease of both Diesel Systems, which suffered from the weak tractor market and a declining Diesel-share in passenger cars, as well as Automotive Aftermarket.
Bosch’s Mobility Solutions sector grew by 7.4 per cent between April 2014 and March 2015 and outperformed the automotive market, which grew by 3.5 per cent.
Bosch’s Energy and Building Solutions (BEBS) division achieved a total installed capacity in solar photovoltaics of 18.6 MWp since its inception in 2014.
In view of the company’s results, the Board of Directors recommended a dividend of ₹85 per share.
Opening of new manufacturing locations during the period under review saw the setting up of three new plants: Bidadi (Diesel Systems), Gangaikondan (Gasoline Systems) and Chennai (Power Tools). Bosch Ltd’s Bidadi plant is scheduled for inauguration in the third quarter of 2015.
Investment
The company made capital investments of around ₹500 crore in 2014 and plans further outlay of around ₹650 crore in 2015.