Capitaline

Results 11-May-23

Analysis

Bosch

NP up 13.45%

For the quarter ending March 2023, consolidated Net sales (including other operating income) of Bosch has increased 22.72% to Rs 4063.4 crore compared to quarter ended Mar 2022. Sales of Automotive products segment has gone up 25.98% to Rs 3,416.50 crore (accounting for 83.64% of total sales). Sales of Others segment has gone up 29.68% to Rs 192.70 crore (accounting for 4.72% of total sales). Sales of Consumer Goods segment fell 1.08% to Rs 475.70 crore (accounting for 11.65% of total sales). Inter-segment sales came down from Rs 30.40 crore to Rs 21.50 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 23.98% to Rs 497.30 crore. PBIT of Automotive products segment rose 29.11% to Rs 414.30 crore (accounting for 83.31% of total PBIT). PBIT of Others segment rose 50.00% to Rs 40.80 crore (accounting for 8.20% of total PBIT). PBIT of Consumer Goods segment fell 20.38% to Rs 42.20 crore (accounting for 8.49% of total PBIT).

PBIT margin of Automotive products segment rose from 11.83% to 12.13%. PBIT margin of Others segment rose from 18.30% to 21.17%. PBIT margin of Consumer Goods segment fell from 11.02% to 8.87%. Overall PBIT margin rose from 12.00% to 12.17%.

Operating profit margin has declined from 13.31% to 12.86%, leading to 18.54% rise in operating profit to Rs 522.40 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 21.54% to 20.74%. Purchase of finished goods cost rose from 42.10% to 44.72%. Employee cost decreased from 7.77% to 7.74%. Other expenses fell from 14.91% to 14.47%.

Other income rose 55.73% to Rs 135.8 crore. PBIDT rose 24.68% to Rs 658.2 crore. Provision for interest fell 36.99% to Rs 4.6 crore. Loan funds declined from Rs 72.90 crore as of 31 March 2022 to Rs 53.20 crore as of 31 March 2023. Inventories rose to Rs 1,902.90 crore as of 31 March 2023 from Rs 1,729.30 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,902.90 crore as of 31 March 2023 compared to Rs 1,534.30 crore as of 31 March 2022. Cash and bank balance rose to Rs 2,057.10 crore as of 31 March 2023 from Rs 1,705.60 crore as of 31 March 2022. Investments declined from Rs 5,521.30 crore as of 31 March 2022 to Rs 5,017.60 crore as of 31 March 2023.

PBDT rose 25.55% to Rs 653.6 crore. Provision for depreciation rose 35.20% to Rs 120.6 crore. Fixed assets increased to Rs 2,096.80 crore as of 31 March 2023 from Rs 1,816.90 crore as of 31 March 2022.

Profit before tax grew 23.55% to Rs 533.00 crore. Provision for tax was expense of Rs 134.1 crore, compared to Rs 80.9 crore. Effective tax rate was 25.20% compared to 18.74%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 13.45% to Rs 398.10 crore.

Equity capital stood at Rs 29.50 crore as of 31 March 2023 to Rs 29.50 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 70.54% as of 31 March 2023 ,compared to 70.54% as of 31 March 2022 .

Full year results analysis.

Net sales (including other operating income) of Bosch has increased 26.72% to Rs 14929.3 crore. Sales of Automotive products segment has gone up 28.68% to Rs 12,916.10 crore (accounting for 86.14% of total sales). Sales of Others segment has gone up 22.92% to Rs 675.30 crore (accounting for 4.50% of total sales). Sales of Consumer Goods segment rose 10.91% to Rs 1,403.40 crore (accounting for 9.36% of total sales). Inter-segment sales came down from Rs 70.50 crore to Rs 65.50 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 24.30% to Rs 1,825.80 crore. PBIT of Automotive products segment rose 24.61% to Rs 1,581.20 crore (accounting for 86.60% of total PBIT). PBIT of Others segment fell 2.27% to Rs 129.00 crore (accounting for 7.07% of total PBIT). PBIT of Consumer Goods segment rose 70.00% to Rs 115.60 crore (accounting for 6.33% of total PBIT).

PBIT margin of Automotive products segment fell from 12.64% to 12.24%. PBIT margin of Others segment fell from 24.03% to 19.10%. PBIT margin of Consumer Goods segment rose from 5.37% to 8.24%. Overall PBIT margin fell from 12.39% to 12.18%.

Operating profit margin has declined from 12.41% to 12.10%, leading to 23.55% rise in operating profit to Rs 1,806.70 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 22.98% to 21.69%. Purchase of finished goods cost rose from 39.84% to 42.03%. Employee cost decreased from 8.85% to 7.60%. Other expenses rose from 16.21% to 16.68%.

Other income rose 21.08% to Rs 473.2 crore. PBIDT rose 23.03% to Rs 2279.9 crore. Provision for interest fell 58.13% to Rs 12.1 crore. Loan funds declined from Rs 72.90 crore as of 31 March 2022 to Rs 53.20 crore as of 31 March 2023. Inventories rose to Rs 1,902.90 crore as of 31 March 2023 from Rs 1,729.30 crore as of 31 March 2022. Sundry debtors were higher at Rs 1,902.90 crore as of 31 March 2023 compared to Rs 1,534.30 crore as of 31 March 2022. Cash and bank balance rose to Rs 2,057.10 crore as of 31 March 2023 from Rs 1,705.60 crore as of 31 March 2022. Investments declined from Rs 5,521.30 crore as of 31 March 2022 to Rs 5,017.60 crore as of 31 March 2023.

PBDT rose 24.32% to Rs 2267.8 crore. Provision for depreciation rose 18.90% to Rs 385.6 crore. Fixed assets increased to Rs 2,096.80 crore as of 31 March 2023 from Rs 1,816.90 crore as of 31 March 2022.

Profit before tax grew 25.49% to Rs 1,882.20 crore. Share of profit/loss was 7.69% lower at Rs 1.2 crore. Provision for tax was expense of Rs 457.9 crore, compared to Rs 282.9 crore. Effective tax rate was 24.31% compared to 18.84%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 17.01% to Rs 1,425.50 crore.

Equity capital stood at Rs 29.50 crore as of 31 March 2023 to Rs 29.50 crore as of 31 March 2022. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 70.54% as of 31 March 2023 ,compared to 70.54% as of 31 March 2022 .

Cash flow from operating activities increased to Rs 1,213.70 crore for year ended March 2023 from Rs 268.50 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 641.00 crore, compared to Rs 461.30 crore during the year ended March 2022.

Other Highlights

Board recommended a final dividend of Rs 280 per equity share of Rs 10 each. The total dividend payout for the financial year 2022·23 (including interim dividend Rs 200 paid in March 2023) is Rs 480 per equity share.

Management Comments :
Soumitra Bhattacharya, Managing Director of Bosch and President of the Bosch Group in India said “2022 was a historic year as we celebrated 100 years of Bosch in India and at the same time it was a year replete with challenges in the market. Despite all odds, we concluded the year with strong performance and positive revenue growth. This was primarily fueled by the solid recovery in the auto market post pandemic. Reaffirming our commitment to being `Invented for Life’, we recognize the pressing need for both - software technologies and sophisticated hardware- in the Indian Automotive Industry. Internal Combustion Engine (ICE) will remain the dominant technology in the passenger car segment, even as the transition to electrification is already underway. At Bosch, we will continue to provide products and solutions as per evolving market requirements.”

Speaking about the outlook for the upcoming fiscal year, Bhattacharya commented: “As we look ahead to fiscal year 2023-24, we recognize the challenges that lie ahead due to the ongoing uncertainty caused by certain macro factors. Despite these challenges, we remain optimistic about the automotive market, which saw record production volumes in FY 2022-23. It also saw good acquisition of projects catering to TREM5 and OBD2 regulations resulting in strong order book, for next 3 to 5 years. We anticipate a moderate growth in India’s GDP, which will likely lead to a 5 to 6 percent increase in the automotive market. At Bosch Limited, we are confident in our ability to navigate these headwinds, particularly as we continue to see an increase in content per vehicle due to components supplied for exhaust gas treatment and implementation of BSVI stage 2. With this in mind, we expect total revenue from sales to grow around 15 percent.”

Bosch : Consolidated Results

	Quarter ended			Year ended
Particulars	202303	202203	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	4,063.40	3,311.00	22.72	14,929.30	11,781.60	26.72
OPM (%)	12.86	13.31	-45 bps	12.10	12.41	-31 bps
OP	522.40	440.70	18.54	1,806.70	1,462.30	23.55
Other Inc.	135.80	87.20	55.73	473.20	390.80	21.08
PBIDT	658.20	527.90	24.68	2,279.90	1,853.10	23.03
Interest	4.60	7.30	-36.99	12.10	28.90	-58.13
PBDT	653.60	520.60	25.55	2,267.80	1,824.20	24.32
Depreciation	120.6	89.2	35.20	385.6	324.3	18.90
PBT	533.00	431.40	23.55	1882.2	1499.9	25.49
Share of Profit/(Loss) from Associates	-0.8	0.4	PL	1.2	1.3	-7.69
PBT before EO	532.2	431.8	23.25	1883.4	1501.2	25.46
EO Income	0	0	-	0	0	-
PBT after EO	532.2	431.8	23.25	1883.4	1501.2	25.46
Taxation	134.1	80.9	65.76	457.9	282.9	61.86
PAT	398.1	350.9	13.45	1425.5	1218.3	17.01
Minority Interest (MI)	0	0	-	0	0	-
Net profit	398.1	350.9	13.45	1425.5	1218.3	17.01
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	398.1	350.9	13.45	1425.5	1218.3	17.01
EPS (Rs)*	134.98	118.97	13.45	483.32	413.07	17.01

* EPS is on current equity of Rs 29.49 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Bosch : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202303	202203	Var.(%)	% of (Total)	202303	202203	Var.(%)
Sales
Automotive products	83.64	3,416.50	2,711.90	25.98	86.14	12,916.10	10,037.30	28.68
Others	4.72	192.70	148.60	29.68	4.50	675.30	549.40	22.92
Consumer Goods	11.65	475.70	480.90	-1.08	9.36	1,403.40	1,265.40	10.91
Total Reported Sales	100.00	4,084.90	3,341.40	22.25	100.00	14,994.80	11,852.10	26.52
Less: Inter segment revenues		21.50	30.40	-29.28		65.50	70.50	-7.09
Net Sales	100.00	4,063.40	3,311.00	22.72	100.00	14,929.30	11,781.60	26.72
PBIT
Automotive products	83.31	414.30	320.90	29.11	86.60	1,581.20	1,268.90	24.61
Others	8.20	40.80	27.20	50.00	7.07	129.00	132.00	-2.27
Consumer Goods	8.49	42.20	53.00	-20.38	6.33	115.60	68.00	70.00
Total PBIT	100.00	497.30	401.10	23.98	100.00	1,825.80	1,468.90	24.30
Less : Interest		4.60	7.30	-36.99		12.10	28.90	-58.13
Add: Other un-allcoable		40.30	37.60	7.18		68.50	59.90	14.36
PBIT Margin(%)
Automotive products		12.13	11.83	29.34		12.24	12.64	-39.98
Others		21.17	18.30	286.86		19.10	24.03	-492.36
Consumer Goods		8.87	11.02	-214.99		8.24	5.37	286.33
PBT	100.00	533.00	431.40	23.55	100.00	1,882.20	1,499.90	25.49

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