By IANS
Bangalore : Bosch Ltd, the Indian subsidiary of the euro 46 billion Bosch group that manufacturers automotive and industrial products, posted a net profit of Rs.6.1 billion ($152 million) in calendar year 2007, posting a 14 percent growth, the company said here Thursday.
The Bangalore-based Bosch, formerly Motor Industries Co Ltd (MICO), reported net sales of Rs.42.8 billion ($1.07 billion) in the same period, registering a 13 percent growth. Its operating profit was up 20 percent.
“Net sales last year was below expectations due to the sluggish growth in the automobile market comprising passenger cars, heavy commercial vehicles, light commercial vehicles, utility vehicles and tractors, which grew by 10 percent as against 18 percent in 2006,” Bosch joint managing director Ferdinand Allerkamp told reporters here.
Exports including buyback by the parent firm grew by seven percent to Rs.6.7 billion despite 11-12 percent rupee appreciation during the year.
After a strong growth in the first quarter of 2007, demand in the automobile sector slowed due to a higher interest rate and the subdued sentiment. The market was expected to recover during the last quarter riding on the festival season and aggressive promotion to boost sales but that did not happen.
“We saw a significant slowdown in certain segments of the automotive market, notably tractors, three-wheelers and heavy commercial vehicles. Our sales, however, were higher than the market growth (10 percent).
“We hope to sustain the double-digit growth this year too though it is bit early to estimate the quantum. Reduction in excise duty across the board and for small cars and income tax sops in the union budget for fiscal 2008-09 will induce demand growth due to affordability and higher disposable incomes with tax-payers,” Bosch managing director V.K. Viswanathan said.
With 11 manufacturing sites and four development facilities in Bangalore, Nashik, Jaipur and Ahmedabad for automotive and industrial products, the German flagship firm supplies products and services to original equipment manufacturers (OEMs) and the replacement market across the counter.
As a group with four subsidiaries, Bosch India’s consolidated revenue grew 14 percent to Rs.57 billion ($1.43 billion), with Robert Bosch Engineering and Business Solutions Ltd contributing Rs.6.3 billion, Bosch Chassis Systems India Ltd Rs.5.3 billion and Bosch Rexroth India Ltd Rs.2.7 billion.
The listed firm declared a dividend of Rs.25 (150 percent) on a share of Rs.10 for the year as against Rs.16 in 2006 (160 percent).
Of the Rs.26.5 billion ($663 million) investments committed for 2005-10, the German major has spent Rs.18.6 billion or about 70 percent till 2007 in expanding its manufacturing capacity and adding new plants, including Bosch packaging unit at Verna in Goa.
“With this huge investments in technologies and products, we are committed to bring clean, safe and economical technologies to the Indian market,” Viswanathan noted.