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Bosch Limited, a supplier of automotive components and technology to original equipment manufacturers (OEMs), has posted 21.8% rise in net profit at Rs 307 crore for the second quarter ended June 30, 2014 compared to Rs 252 crore reported in the corresponding quarter last year.
The total income recorded a marginal growth of 3.9% to Rs 2,394 crore as against Rs 2,305 crore in the same quarter last year.
The operating profit for the quarter rose 23.5% to Rs 342 crore compared to Rs 277 crore in the year ago period.
"Our sales have been subdued in the second quarter of 2014, mainly due to limited consumer demand, tight liquidity in the market and reduced levels of activity around the period of general elections. While, the third and fourth quarter of 2014 will remain challenging, we believe that the consumer sentiment and markets are heading in the right direction. At Bosch, we hope this will trigger tangible and sustainable growth in the coming quarters," said Steffen Berns, managing director, Bosch Limited.
The automotive business, which constitutes a major portion of its revenues in India, grew moderately by 2.8%. This is above the overall Indian automotive market, which stayed flat in the second quarter, said Berns.
The non-automotive business overall performed below expectation with only a marginal growth, he said.
The company's efforts on improving operational efficiency, budget control and material cost led to higher operating margin, but adverse factors such as inflation still remain a concern. "Our expansion plans are on course and we are prepared for the much awaited revival of the economy," Berns added.
The Board of Directors of Bosch has also decided to change its financial year from January-December to April-March format with effect from next fiscal. As a result, the current financial period will be for 15 months from January 1, 2014 to March 31, 2015, the company said.
