Global auto component maker Bosch on Tuesday reported a 5.09 per cent decline in its net profit at Rs 411.70 crore for the fourth quarter ended March 31 as a slump in the automobile market led to lower sales volume, impacting the company's bottom line. In Q4FY19, the revenue from operations stood at Rs 2,749.15 crore, a drop of around 13 per cent as compared to the same period of previous financial year.
During the last financial year, Bosch's net profit increased by 16.6 per cent to Rs 1,598 crore, while its revenue rose around 5 per cent to Rs 12,258 crore. “The results in Q4FY19 must be contextualised within the predominant weakness of the overall automotive market,” said Soumitra Bhattacharya, managing director at Bosch.
“Through targeted investments, infrastructure developments within the organisation and adoption of technology, we look to secure our business in challenging times for the automotive industry in the country,” he said.
According to the company, its total investment during the last financial year was at Rs 597 crore, an increase of 30 per cent over the previous fiscal. The firm said it is currently supporting clients in developing vehicles that are compliant with the BS VI emission standards as mandated by the Supreme Court from April 2020 onwards.
Among its various verticals, Bosch's mobility solutions business segment witnessed 3.3 per cent increase in revenue in FY19 owing to strong business growth in the first two quarters of last fiscal. While its domestic sales increased by 4 per cent, its export sales decreased by 4.5 percent in the last financial year, the company said.
On the outlook for the ongoing fiscal, the auto component maker said it would post sound growth despite the headwinds facing the industry.
"India's mobility sector is rapidly transforming and it is assumed to experience a significant growth with electric mobility in coming years. This fiscal year, Bosch will be seen to contribute significant innovations to the industry," Bhattacharya said.
Globally, the German-based firm is hopeful of improving its sales in 2019. " The Bosch Group expects global economic development to be subdued in 2019. We expect our sales in the current year to slightly exceed the 2018 levels," it said.