Key Points from the discussion:

Bosch posted net sales and income from operations of Rs 2611.54 crores in second quarter ended September 2016, 10% increase over the same period of the previous year. Revenues increased 4% on qoq basis.

PAT stood at Rs 422.91 crores or 16.2% of sales, a rise of 11% over the same period of the previous year.

PAT improved due to higher sales volume, improved productivity and treasury income.

OPM during Q2 FY 17 remained under pressure. The company's margins witnessed 20 bps drop, mainly due to rise in other expenses and raw material including purchase of stock cost and rise in other expenses.

Q2 FY 17 revenues were driven by growth of ~8% yoy in autos and 18% yoy in non-autos.

The company enjoys very strong and unique positioning in the auto component industrywith focus on technology enabling high value add, strong relationships with

OEMs and strong aftermarket presence.

Domestic revenuesrose ~9% yoy, led by 7.8% yoy growth inautos and helped by double-digit growth in non-autos.

Auto exports declined5.4% yoy, while non-auto exportsincreased 9% yoy on a lower base.

Diesel systems and after market segments were flat in Q2 FY 16 due to decline in CV and3W volumes. The same was offset by strong PV demand.

Gasoline systemsrecorded highdouble-digitgrowth as demand ramped up.

Power tools and securitysystems witnessed high-double-digit growth in non-autos.

The Bosch management expectslocalization to depend on volumes. The company feels that it will be difficult to have high localization levelsinitially. It will increase on gradual ramp-up.

Management expects opportunity from BSVI implementation in 2Wsto be huge becauseof much higher 2W base.

Customer contractsfor BSVI are most likely to be finalized in FY18.