• Sales for the quarter were down by 16% to Rs 2536.64 crore. Sales of Mobility Solutions business decreased by 25.8% for the quarter mainly driven by Powertrain Solutions division which was affected by auto sector slowdown. Bosch's business beyond Mobility Solutions sector posted a decline of 13.9% and the reduction is mainly on account of decline in business of solar energy division which is predominantly project driven.

• Lower sales together with 110 bps contraction in OPM resulted in 22% fall in operating profit to Rs 320.25 crore. After accounting for lower OI which was down by 22% to Rs 139.94 crore the PBIDT was down by 22% to Rs 460.19 crore.
• While interest cost stand lower by 71% to Rs 2.90 crore, the depreciation was up by 9% to Rs 109.84 crore. Thus hit by higher depreciation, the PBT was down by 28% to Rs 347.45 crore. EO expense for the period was Rs 207.46 crore (against nil in corresponding previous period) being additional provision towards various restructuring and transformational projects. Hit further by higher EO expense the PBT after EO was down by 71% to Rs 139.99 crore.
• With taxation stand lower by 86% to Rs 20.58 crore, the fall at PAT level moderated a bit to stand at 64% to Rs 119.41 crore. With share of profit from associate being a loss of Rs 0.09 crore against the profit of Rs 0.01 crore, the net profit was down by 64% to Rs 119.32 crore.

Nine month performance

Sale for the period was down by 19% to Rs 7604.76 crore. Sales of Mobility Solutions sector decreased by 24.6%, whereas business beyond Mobility Solutions sector witnessed a reduction of 13.2%.

Lower sales with 250 bps contraction in operating profit margin resulted in 30% fall in operating profit to Rs 1141.93 crore. The PBT before EO was down by 28% to Rs 1275.35 crore after accounting for lower OI, lower interest and lower depreciation.

The EO Expense for the period was Rs 419.76 crore compared to nil in the corresponding previous period and thus the PBT after EO was down by 52% to Rs 855.59 crore. With taxation standing lower by 40% to Rs 351.93 crore, the PAT was down by 57% to Rs 503.66 crore. After accounting for share of loss from associates of Rs 0.06 crore (compared to a profit of Rs 0.19 crore), the net profit was down by 57% to Rs 503.60 crore.

Management comment

Soumitra Bhattacharya, Managing Director of Bosch Limited and President of the Bosch Group in India said, "The entire automobile industry is in the grip of a slowdown with a major technology shift from BS-IV to BS-VI in the horizon. Together with OEMs, Bosch has been working relentlessly to meet the April 1, 2020 deadline for the implementation of BS-Vl technologies. At the same time, we are continuing to invest in electrification and other mobility solutions,". He further added, "Through a technology agnostic approach, we actively support the Government's initiatives towards the auto sector with an India first objective."