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Bosch’s PAT drops 12% to ₹458 crore in Q3

Bosch’s PAT drops 12% to ₹458 crore in Q3


German mobility major Bosch Ltd has reported a profit-after-tax (including exceptional items) at ₹458 crore for the quarter that ended on December 31, down by 12 per cent year-on-year (YoY) from ₹518 crore.

The revenue from operations stood at ₹4,465.7 crore for Q3FY25 crore from ₹4,205.2 crore, up by 6.2 per cent YoY. The revenue growth is driven by the increase in service income from the development of automotive components for major OEMs, said the company.

In a conversation post the quarterly results, Guruprasad Mudlapur, President, Bosch Group India, and MD, Bosch Ltd, discusses the business update for the quarter.

Can you elaborate on the quarter performance, and share insights into the demand environment and what is driving the growth?

It has been a tough quarter for the industry. The revenue for the mobility sector has increased by 1.6 per cent compared to the same quarter last year. The Power Solutions business, which constitutes 71 per cent of the overall automotive product sales, saw an overall decline of about 1.8 per cent, primarily due to a slowdown in the HCV (heavy commercial vehicle) segment, which reflects a broader economic slowdown. The HCV market seems to be facing structural challenges, and we expect this trend to continue in the short term. However, we are hopeful for a recovery post-Budget.

On the other hand, our mobility aftermarket business performed strongly, growing by 8.8 per cent with internal sales growth across various product lines. Our non-mobility sector performed well. Our tools grew by 8.8 per cent, which is noteworthy compared to the segment. The Building Technologies division also saw a healthy growth of 7.6 per cent, supported by consistent localisation efforts and some key project wins, along with an increased market presence. Overall, while the automotive market has dipped this quarter, we see signs of recovery. Inventory positions are improving, and we are optimistic about a better uptick in the next quarter.

In the larger auto segment, particularly the four-wheeler industry, the inventory overhang has been a significant concern for major players. Given your close collaboration with most of them, has this issue been addressed?

The inventory situation has not yet been fully addressed, although it has certainly improved. Festive season discounting and offers helped bring inventory levels down, but I would not say the issue is completely resolved. There are still challenges in specific categories, particularly in the small car segment, where inventory levels remain high. It will take more effort and time to address these imbalances across all categories comprehensively.

Could you elaborate on the realignment of the Building Technologies division globally, particularly the move to a subsidiary of Bosch Security Systems?

The Building Technologies division has undergone a global carve-out. In India, we have decided to transfer this division to Keenfinity India Private Ltd, a subsidiary of Bosch Security Systems Netherlands. This includes the video, access, intrusion, and communication systems business, which will be sold at a valuation of ₹595 crore. This move is part of Bosch’s global strategy. The company believes that this business will thrive better under a different parent organisation. Globally, Bosch had already announced the sale of this division to the private equity firm Triton. Here in India, we are carving it out and transferring it under Keenfinity India Private Ltd, which is part of Bosch, before it ultimately transitions to Triton as part of the global offloading.

Given the slowdown in the auto market, what green shoots do you observe? What key trends can we expect to emerge in the near future?

The green shoots remain the same. Electrification continues to be a significant area of focus, alongside increasing levels of personalisation in vehicles. Looking ahead, we anticipate further advancements in personalisation, catering to customer-specific preferences and needs. Additionally, we look forward to further penetration of hydrogen at some point of time in the future. These are some of the trends we believe will shape the market moving forward.

What are some of the headwinds you foresee for the second half of the year that could impact the industry overall?

There are several headwinds. The global economic slowdown continues to be a concern, along with forex challenges and issues related to the rupee. We are also seeing issues of GDP slowing down and tariff-related uncertainties. While I would not say India is facing major domestic challenges at the moment, it is important to note that we are not immune to the global slowdown or structural issues affecting other economies. These factors could potentially impact India’s GDP as well. That said, I believe the government has already accounted for these challenges in its slightly revised GDP projections. These would be the primary headwinds I would highlight for the second half of the year.





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