Bosch Limited registers 13.7 percent profit before tax in Q1 FY 2021-22
Bengaluru, India – Bosch Limited, a leading supplier of technology and services, posted total revenue from operations of INR 2,444 crores in quarter 1 of FY 2021–22, an increase of 146 percent. The increase is due to lower base and recovery in sales as the lockdown restrictions eased across states in the country in June’21.
Profit before tax stood at INR 335 crores. This is 13.7 percent of total revenue from operations. Profit after tax stood at INR 260 crores. This is 10.6 percent of revenue from operations.
“While the industry has shown continued signs of recovery since the second quarter of FY2020-21, the second wave of Covid-19 induced an undeniable pressure on the Indian automotive sector with a surge in infections, localized lockdowns, and lowered demand sentiment. The intensifying second wave proved a challenge for several OEMs across the country, causing them to cut production or suspend operations,” said Soumitra Bhattacharya, Managing Director, Bosch Limited and President of the Bosch Group in India. “Given the uncertain economic environment, the impending third wave of COVID-19 and unpredictability in the international supply chain, we would like to maintain a cautious business outlook for rest of FY2021-22,” he added.
Snapshot of performance in Quarter 1
Product sales increased 181 percent in first quarter of FY2021-22, with the Powertrain Solutions division registering an increase of 316 percent and the Two-Wheeler division witnessed an increase of 156 percent due to a low base in Q1 FY2020-21. Outside the Mobility Solutions business sector, business recorded an increase of 82 percent. In June 2021, the company witnessed a recovery in sales volumes after the easing of nationwide lockdown restrictions.
Performance in April-June 2021 compared to Jan-March 2021
Total revenue from operations in Q1 of FY 2021–22 declined by 24 percent compared to Jan-March 2021. In the quarter ended June 2021, the company posted a Profit after Tax of INR 260 crores as compared to INR 482 crores in January-March 2021. Product sales of Mobility business sector declined by 23.6 percent and business beyond mobility sector declined by 37.9 percent due to reduced turnover on account of COVID-19 lockdowns resulting in suspension of operations at multiple OEMs.
Vaccinations hold a key for the future
The only way to kickstart economic activity, boosting consumer sentiment and augmenting automotive demand, is through vaccinations. While India’s government and health authorities are making commendable effort in ensuring the supply of vaccines, industry will play a role in ensuring the health and well-being of their workforce. “As a socially responsible organization, at Bosch Limited we have already vaccinated 90 percent of our associates with the first dose, including contractors and immediate family members, free of cost. The health and safety of all our associates remains our topmost priority,” Mr. Bhattacharya said.
