World’s largest auto parts maker Bosch is witnessing a decline in its India business because of a slowdown in the auto industry.

The Germany-based company reported a 19 per cent decline in net profit at ₹139 crore for the fourth quarter (October-December 2013), though for the full-year, it decreased 7.7 per cent to ₹884.68 crore. On a sequential basis, the company saw a 40 per cent fall, sharpest among the four quarters. This was in spite of lower tax and finance charges for the period.

But the company, which contributes 3.5 per cent of the total revenue of Bosch worldwide, said it will continue to invest in the Indian market. It has earmarked an investment of ₹600 crore as capex this year.

Its total income from operations for the quarter was nearly flat at ₹2,162 crore on a year-on-year basis and for the entire year, the increase was a mere 1.85 per cent at ₹8,820.06 crore

Bosch Managing Director Steffen Berns told reporters on Thursday that the rupee depreciation as well as a decline in the auto market in India by 7 per cent during 2013 had dragged down the company’s performance. “However, our cumulative measures on cost control have helped us limit the decline in profitability,” he said.

The automotive division of the company’s earnings fell by less than one per cent, though the production volumes in the auto industry fell 3 per cent. While the petrol-based products grew between 5 per cent and 7 per cent during the year, diesel-based products fell at the same rate.

Bosch also launched its energy and building solutions business in the country. This business will be headquartered in India for the Asia-Pacific region. The business model will be based on guaranteed saving model, while the energy generation solution will be based on renewable energy.

Bosch’s board has declared a dividend of ₹55 a share compared with ₹60 last year.

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