Monday, March 03, 2014: Bosch Ltd, the auto components company has reportedly suffered a drop in profits of about 8 per cent. The company has also suffered losses because of the 3 per cent down-growth in the Indian automotive sector. With obstacles like a weak rupee, Bosch recorded a revenue loss by 8 per cent in 2013.
Bosch Ltd, which is a listed company, accounts for 66 per cent of Bosch Group’s overall business in India. The company handles in sectors like automotive and industrial technology, consumer goods, and building technology.
Bosch Ltd is the flagship company of the $2 Billion worth Bosch Group in India.
Steffen Berns, the managing director at Bosch Ltd, told TOI, “The prolonged slowdown in the automotive industry in 2013 coupled with weak consumer demand has impacted our growth.” The company saw a 1.8 per cent growth in revenue to Rs 88.2 billion, in comparison to the Rs 86.5 billion recorded in 2012. Its profit descended to Rs 8.8468 Billion, down by 7.67 per cent over Rs 9.5827 Billion in 2012.
The company had invested Rs 5 Billion in growing its capacity with anticipation that the economy will rise soon. On the other hand, with higher depreciation charges, the accumulation of assets resulted in a 4.7 per cent increase in depreciation costs.
Further, Bosch is burdened with forex losses, as its imports account for close to 26 per cent of the company’s overall revenue.
However, Bosch’s non-automotive business registered a growth of over 19 per cent, as Bosch Power Tools is reportedly the only business the group to record a double-digit growth last year, with sales of up to 100,000 tools.
