BENGALURU: German auto components company Bosch’s net profit rose about 31 per cent in the fourth quarter helped by higher sale of its automotive products.
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Net profit rose 30.81 per cent to Rs 376 crore, for the fourth quarter ended March 31, from Rs 287.45 crore, a year earlier on a standalone basis. Net sales rose 12.2% to Rs 2,635.37 crore. Automotive products revenue, which made up about 90 per cent of the sales, rose xx% to Rs 2,412 crore.
“The domestic business of our company grew well above the production volumes of the automotive market again in this quarter. Exports declined due to weak demand from our export markets”, Bosch Ltd managing director Stephen Burns said.
Boch said the increase in profit was due to favourable product mix, increased operational efficiencies and productivity increase. The mobility solutions sector grew by 12.6% with diesel systems and gasoline systems divisions registering double digit growth.
The company added it will invest about Rs 770 crore this fiscal year on its manufacturing facilities in Bidadi and Nashik for Common Rail pumps and injectors and in Bengaluru for its R&D Tech centre. This is part of Boch’s plans to invest about Rs 1,000 crore in its Indian operations in the next two years.
According to Berns, the market performance of the coming quarters will be determined by monsoon, fuel prices, interest rates and speed of execution of government reforms. “We expect moderate growth in the automotive industry and remain cautiously optimistic about the Indian market this year,” he said.