Bosch impresses with good Q3FY18 performance

Bosch reported impressive results for the quarter ended December 31, 2017 on Monday. The company’s standalone revenue for the quarter came in at Rs. 3,071.92 crore, registering a 6.5 per cent yoy increase.

EBITDA for the quarter rose by 55.7 per cent yoy to Rs. 447.59 crore with a corresponding margin expansion of 460 bps. EBITDA margin for the quarter stood at 14.6 per cent. This margin expansion was aided with favourable movements in inventories and improvement in material and personnel cost. The PAT for the quarter came in at Rs. 281.01 crore, yoy increase of 28.8 per cent.

Overall, Bosch Limited’s Mobility Solutions businesses grew by 17.8 per cent and outperformed the automotive market which grew by 14.0 percent (excluding two-wheeler) in this period. Key performing divisions were the Gasoline Systems business, which registered an impressive growth of 37.1 percent.

Sales of the Diesel Systems’ division registered a similar growth of 33.6 per cent, supported by higher demand and price for new generation products with the changes in emission norms which came to effect from April 2017 onwards.

Bosch’s Automotive Aftermarket division witnessed a stable growth of 4 per cent after recovering from GST transition. It was impacted by low availability of working capital with channel partners, and a reduction in the company’s Car Multimedia business.

Bosch is a leading supplier of technology and services in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. On Monday, the stock opened at Rs. 19,300 per share and touched an intra-day high and low of Rs. 19,900 and Rs. 19,226.60, respectively, on the BSE.