Bosch Ltd, the flagship of auto component major Bosch Group in India, increased its net profit for 2007 by 11% to Rs 609 crore from Rs 548 crore in 2006. The net sales of the company climbed by 13% to Rs 4,2796 crore from Rs 3,783 crore.
Disclosing the company’s full year results, Bosch Ltd’s managing director V K Viswanathan said: “The year 2007 saw a significant slowdown in certain segments of the automotive market notably tractors, two and three-wheelers and heavy commercial vehicles. The company has grown more than the market growth. However, this growth was below our expectations due to this slow down.”
The company’s diesel business grew by 12% while starter and generator business witnessed a jump of 22% and gasoline business recorded a growth of 5%. The automotive after market business grew by more than 9%.
The company has invested around Rs 400 crore in 2007 and would continue the same level of investment in the current year.
Declining to provide financial guidance for 2008, he said: “We have to wait and watch the first two quarters of the current year.” Viswanathan also noted that the slowdown that was witnessed at the end of 2007 in the Indian auto market has continued in January 2007.
“In medium to long term we are very bullish, but very near term we have too see.”
He said the duty cut on small cars and commercial vehicles and expected good level of disposable income on the back of tax exemptions announced in the budget are positive signs for the auto industry. “But the higher fuel prices and inflation could be worrying factor,” he said.
“If market grows, another 1,000 employees would be recruited in 2008 in addition to its existing 11,500 employees,” Vishwanathan said.
The entire Bosch Group in India that includes four entities – Bosch Ltd, Bosch Chassis Systems, Bosch Rexroth and Robert Bosch Engineering – has reported a turnover of Rs 5,700 crore in 2007.