Leading technology and services supplier Bosch Limited on Thursday, reported a 12.1 percent Profit before tax (Before EI) for Q3 FY 2020-21.
In a statement issued, Bosch Limited said, “The company has posted a total revenue from operations to Rs 3,030 crore in Q3 of FY 2020-21, reporting 19.4 percent increase over the same quarter previous year.”
“The Profit before Tax (PBT) before exceptional item stood at INR 365.7 crores which is an increase of 5.2 percent over the same period of the previous year,’ the company said.
Commenting on the investment in its 3R strategy of Restructuring, reskilling, and redevelopment, Bosch Limited said, “The company has infused an additional amount of Rs 146.6 crores in 3R and has disclosed as an exceptional item for the quarter ended December 31, 2020.”
“This is the last tranche extended under the current 3R strategy,” it added.
“After allowing for the exceptional item, profit before tax stood at INR 219 crores and profit after tax at INR 185.7 crores. PAT before exceptional items stood at 9.8 percent of total revenue from operations,” Bosch said.
Speaking on the results Soumitra Bhattacharya, Managing Director of Bosch Limited and President of the Bosch India Group, said, “The sales figure for the festive season in the last quarter was better than anticipated, especially in the tractor and passenger automotive segments. However, the volatilities in the supply chain continued to disrupt growth.”
“Since late last year, the industry has been hit by a shortage in the supply of semiconductors, which has impacted the company’s imports and automotive production in India. Bosch is currently focusing on maintaining supply chains to the extent possible despite a tense market situation while discussing the issues directly with its customers and suppliers,” he said.
Snapshot of business divisions’ performance in Quarter 3:
- There was an increase in the sales of the Powertrain Solutions business division in Quarter 3 of FY 2020-21 by 46 percent. The Two-Wheeler and Powersports business continued to witness growth during the quarter. On the other hand, the company’s business in the beyond mobility segment posted a decline of 7.7 percent due to lower revenues in solar energy and building technologies.
- The implementation of the approved scrappage policy will undoubtedly improve sales that will benefit the industry and environment.
- The last three years have been tough for the automotive industry. Bosch Limited embarked on a journey to become fit for the future with our 3R strategy – Reskilling, Restructuring, and Redeployment. At the peak of its transformational journey, Bosch Limited has been recognized as a Great Place to Work-Certified™ company for 2021, an accolade that more than 1,000 organizations in India aspire to every year. This is testimony to Bosch Limited’s commitment to creating a credible and fair organization by retaining competence for the future,” Mr. Bhattacharya added.
- For nine months that ended on December 31, 2020, the company’s total turnover declined by 15 percent. Sales of Mobility Solutions sector decreased by 13.3 percent whereas business beyond mobility solutions sector witnessed a reduction of 24.4 percent. With the current deployment of COVID-19 vaccinations and the array of reforms announced by the Government of India, the company maintains a cautiously optimistic outlook for the auto sector.