Hurt by higher depreciation expenses and change in taxation for marketable securities, automotive component manufacturer Bosch today reported 11.90 per cent decline in net profit at Rs 287.45 crore for the quarter ended March 31.
The company had posted a net profit of Rs 326.29 crore in January-March period of the previous fiscal, Bosch said in a filing to the BSE.
Its net sales declined 3.39 per cent to Rs 2,348.92 crore in the quarter under review as against Rs 2,431.41 crore in a year-ago period.
In June 2014, the company, which used to follow calender year, decided to switch its financial year to April-March.
Bosch said the "reduction in profit is mainly due to higher depreciation on higher asset base and change in taxation for marketable securities."
During the quarter, its depreciation and amortisation expenses stood at Rs 142.92 crore as against Rs 88.10 in the corresponding quarter a year ago.
During the period under review, Bosch announced setting up of three new plants in Bidadi (Diesel Systems), Gangaikondan (Gasoline Systems) and Chennai (Power Tools).
"Overall the company made capital investments of around Rs 500 crore in 2014 and plans a further investment of around Rs 650 crore in 2015," it added.
Bosch Managing Director Steffen Berns said: "The market performance of the coming quarters will be determined by factors such as monsoon, fuel prices, interest rates and speed of execution of government reforms. We expect moderate growth in the automotive industry and remain cautiously optimistic about the Indian market this year."
Bosch said its Board has recommended a dividend of Rs 85 per share.
Its scrip closed at Rs 23,655.30, up 2.67 per cent from its previous close on the BSE.
