Bosch India clocks Rs 1,425 profit in FY2023, anticipates strong growth in FY2024

Bosch remains optimistic about growth in Indian automotive industry for FY2024. The TREM5 and OBD2 regulations has helped the company see strong order book.

Bosch Bengaluru

Bosch India, a leading supplier of technology and services has reported revenue of Rs 14,929 crore, up 26.7 percent YoY in FY2023. The net profit came at Rs 1,425 crore, up 17 percent, compared to Rs 1,217 crore a year ago.

For Q4 FY2023, the revenues came at Rs 4,063 crore, up 22.7 percent YoY and a net profit of Rs 398 crore versus Rs 350 crore for the same period last year.

Soumitra Bhattacharya, MD, Bosch and President, Bosch Group India said, “2022 was a historic year as we celebrated 100 years of Bosch in India and at the same time it was a year replete with challenges in the market. Despite all odds, we concluded the year with strong performance and positive revenue growth. This was primarily fueled by the solid recovery in the auto market post-pandemic.”

In FY2023, the company made Rs 751 crore of capital investments with a significant portion allocated towards the development of Spark. NXT campus in Adugodi, Bengaluru. “Reaffirming our commitment to being ‘Invented for Life’, we recognise the pressing need for both – software technologies and sophisticated hardware – in the Indian automotive industry. Internal combustion engine (ICE) will remain the dominant technology in the passenger car segment, even as the transition to electrification is already underway,” added Bhattacharya.

The total product revenue of Bosch Mobility Solutions business sector and Beyond Mobility Solutions business sector increased by 23.7 percent and 7.8 percent respectively. The growth in the latter sector can be attributed to the Energy and Building Technology business.

During the year, Bosch witnessed increase in the share of content per vehicle, particularly in exhaust gas treatment

In the Mobility Solutions business sector, the Powertrain Solutions division in India saw a 35.9 percent increase, while the sales of the two-wheeler business sales grew by 15 percent, particularly in exhaust sensors and fuel injectors segments due to improved supply of semiconductors. Additionally, the automotive aftermarket division sales grew by 15.3 percent and the Beyond Mobility Solutions sector recorded a 14.1 percent increase.

Strong order book for next 5 years

Speaking about the outlook for the upcoming fiscal year, Bhattacharya commented: “As we look ahead to fiscal year 2023-24, we recognise the challenges that lie ahead due to the ongoing uncertainty caused by certain macro factors. Despite these challenges, we remain optimistic about the automotive market, which saw record production volumes in FY 2022-23. It also saw good acquisition of projects catering to TREM5 and OBD2 regulations resulting in strong order book, for next 3 to 5 years.”

He anticipates moderate growth in India’s GDP, which will lead to a 5 to 6 percent increase in the automotive market.

“We are confident in our ability to navigate these headwinds, particularly as we continue to see an increase in content per vehicle due to components supplied for exhaust gas treatment and implementation of BSVI stage 2. With this in mind, we expect total revenue from sales to grow around 15 percent.”

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First published on: 11-05-2023 at 14:15 IST