Automotive and industrial major Bosch Ltd reported 3.4 percent drop year-on-year (YoY) in net sales and income in first quarter (January-March) of this calendar year 2013 to Rs.2190 crore over same period of 2012.
"Though we grew sequentially 6.5 percent from previous quarter (October-December) of 2012, net sales declined in first quarter (Q1) as the automotive market continued to be weak in most of the sectors, compared to the same period of last year," Bosch managing director Steffen Berns said in a statement Tuesday.
Domestic sales declined 2.5 percent YoY, while exports fell 9.5 percent due to weak demand in overseas markets, especially in Europe.
Profit after tax (PAT) declined 23 percent YoY to Rs.260 crore and profit before tax (PBT) dropped 20 percent YoY to Rs.387 crore.
Non-automotive business and starter motors and generators, however, registered significant growth.
"Although we did better than the automotive market, partly because of our strong growth in non-automotive business, we could not compensate the negative impact on our topline," Berns noted.
Admitting that the next few quarters would remain challenging, Berns said the company would continue to prepare for future growth with cautious optimism.
The higher depreciation provision continues due to investments in capital expenditure to prepare for expansion and growth.
"As we continue to see great prospects for the Indian market, we have allocated Rs.650 crore for investment in this year," Berns added.
