German automotive major Bosch posted profits in line with market expectations on the back of increased sale of automotive products but is cautious about its outlook for the 2018 fiscal.
Addressing reporters, Soumitra Bhattacharya, MD, Bosch said that the company is cautiously optimistic about the 2018 fiscal, as strong economic parameters are yet to see traction. “A progressive government focused on reforms, reducing interest rates, expectations of a normal monsoon and improved liquidity post demonetisation substantiates our current outlook,” he said. While hailing the move to roll out GST, Bosch also pointed out that initially there will be some turbulence due to the scale and complexity but will help in the long run, adding that it is well prepared for the roll out.
For the whole year, Bosch clocked a profit of ₹1,740 crore, a 13.5 per cent increase over ₹1,533 crore profit posted in the 2016 fiscal. Revenues came in at ₹10,983 crore (₹10,212 crore). The Board also recommended a final dividend of ₹90 per share on top of the ₹75 per share it gave in February.
The German major has outlined ₹550-600 crore for capital expenditure for the 2017-18 fiscal, similar to last fiscal. Further, it plans to add 3,000 people, largely on the IT side.
It's mobility solutions registered a 5.9 per cent growth, domestic business grew 8.6 per cent, higher than industry average of 7 per cent and business sectors beyond mobility solutions such as security systems, energy and building solutions posted 16.8 per cent growth.
However, it is mobility and IoT that Bosch seems to have zeroed in. The company pointed out the work it is doing in areas like connected vehicle such as software that helps insurers to set premium for drivers based on their driving profile.
Mobility is becoming increasingly electric, automated and connected and we are driving towards that direction, according to Bhattacharya.
The company also plans to embed sensors, which will be connected to the Internet in all of its products by 2020.