"Improved market sentiments, normal monsoon and the festive season have led to a strong quarter for the automotive market. For the quarter, Bosch Limited has registered a healthy growth in line with the market." said Dr. Steffen Berns, managing director of Bosch Limited and president of Bosch Group in India. "We continue to focus on operational efficiencies and productivity improvements. In addition we have continued augmenting our engineering capacities and competencies to work on the BS6 projects. We feel well prepared for the future emission legislation with our products, experience and testing infrastructure facilities," he further elaborated.

Quarterly Performance

For the secondquarter ended September 2016, 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. Raw material cost including purchase of stocks increased 40 bps to 50.9%. The employee cost (as a % of sales, net of stock) decreased 100 bps to 13.2%. Other expense (as a % of sales, net of stock) increased by 110 bps to 18%. OPM during the quarter fell to 18% (against 18.2%) leading toa8%rise in operating profit to Rs469.37 crore.

With 13% rise in other income at Rs210.71 crore, PBIDT rose 10% to Rs680.08crore. With interest cost of Rs97 lakh vis a vis Rs3.24 crore in previous corresponding quarter and 14%rise in depreciation charges at Rs88.93 crore, profit before tax rose 10% to Rs590 crore.

After almost 80 bps drop in effective tax rate and 7%rise in tax provision at Rs167.27 crore, net profit rose 11% to Rs422.91 crore.

In this reporting period, PBT from continuing operations stood at Rs 590 crore or 21.6% of sales, an increase of 9.6% For the same period, PAT from continuing operations was Rs423 crores, an increase of 10.8% over the same period of the previous year, standing at 15.4% of sales.

Overall, the Company's Mobility Solutions businesses grew by 6.7% in thisperiod. Main contribution was from Gasoline Systems which posted a strong

double-digit growth.The business divisions of the sectors beyond mobility performed strongly and grewby 15.9%.

"The company has been focusing on offering integrated crossdivisional solutions in the business sectors beyond mobility. The renewed focus toimprove India's infrastructure segment has helped business units such as PowerTools and Security System to grow strongly," Dr.Berns added.

Half Yearly Performance

For the first half ended September 2016, net sales rose 10% at Rs 5131.09 crore. The company's margins witnessed 220 bps drop, mainly due to rise in raw material including purchase of stock cost and rise in other expenses. Raw material cost including purchase of stocks increased 170 bps to 52.7%. The employee cost (as a % of sales, net of stock) decreased 60 bps to 12.7%. Other expense (as a % of sales, net of stock) increased by 170 bps to 17.3%. OPM during the first half fell to 17.5% (against 19.7%) leading to 2%drop in operating profit to Rs900.36crore.

With 21% rise in other income at Rs389.6 crore, PBIDT rose 4% to Rs1289.95crore. With interest cost of Rs2.24 crore vis a vis Rs4.73 crore in previous corresponding period and 18% rise in depreciation charges at Rs174.88 crore, profit before tax rose 2% to Rs1112.83 crore.

After almost 22 bps drop in effective tax rate and 1% rise in tax provision at Rs335.14 crore, net profit rose 2% to Rs777.69 crore.

Bosch Limited successfully completed a buyback of 878,160 equity shares at aprice of INR 23,000/- per share. The number of equity share bought back

constituted 2.796% of the pre buyback equity share capital. Post buybackshare capital stands at 30,520,740 shares. Robert Bosch GmbH, the parent

company now holds 70.49% of equity shares as against 71.18%earlier.

The scrip is trading around Rs 20,000 at BSE.