Bosch, a leading supplier of technology and services in the areas of mobility solutions, industrial technology, consumer goods, energy and building technology has reported total revenues of ₹3,660 crore and a net profit of ₹319 crore for the third quarter ended December 31, 2022.
While revenue in Q3 was up by 17.7 per cent compared to the same quarter of the previous fiscal, it was however, down by nearly four per cent compared to the second quarter of the current financial year. Similarly, net profit was down by 14.3 per cent in Q3 compared to the previous quarter of the current financial year.
Bosch in a press release said, “The revenue from operations in this quarter has been flat compared to the previous quarter due to decline in net sales resulting from seasonal impact in the passenger car and tractor sales which has been offset by higher income from services and other operating revenue.”
Outlook
Commenting on the outlook, Soumitra Bhattacharya, Managing Director, Bosch Ltd and President of the Bosch Group in India said, “A number of macroeconomic factors will make 2023 a challenging year. There are possibilities of a global recession, and India will not be immune to these impacts. Despite these uncertainties, the revenue for the current quarter is in line with the estimated quarterly forecast. With a strong performance across all quarters this fiscal year, Bosch in India will continue on a strong growth trajectory and focus on optimizing its costs to deliver profitable growth and cash flows in the future.”
The shares of Bosch were trading marginally down by ₹149.40 at ₹17,262.80 on the BSE after the quarterly earnings report was announced. The company said that the automotive market in Q3 witnessed a strong Year-on-Year (Y-o-Y) growth on account of improved market demand. The Powertrain Solutions business which constitutes more than 60% of the total net sales showed a robust growth of 31.1% over same quarter of previous financial year outperforming the overall automotive market growth. This has resulted in a Y-o-Y increase of 21.2% in the product sales of the automotive segment.
Recovery in sales
Bosch, however, warned that the global semiconductor supply chain continues to be in a tight situation. Lower inventory levels combined with frequent and unpredictable disruptions could have a sharp impact in the near future. Although the crisis is far from over, the easing of the chip shortage, particularly in the recent months, has led to a significant recovery in sales in the two-wheeler business, up 31.7% compared to the same quarter last year. The consumer products business of the company also was up by 2.9 percent in Q3 compared to the same period of the previous fiscal, it noted.