Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bosch Ltd (BOM:500530, Financial) reported a 6.4% growth in revenue from operations for the quarter, driven by strong performance in the aftermarket, power solutions, and consumer goods businesses.
- The company's EBITA grew by 14.1% over the same quarter of the previous year, with an improvement in EBITA margin from 11.9% to 12.8%.
- The mobility business saw a 6.7% growth, primarily due to increased sales in the passenger car segment and export sales of electronic control systems.
- The building technologies business experienced a significant growth of 20.1%, attributed to the execution of a high number of orders for installation of video surveillance and communication systems.
- Bosch Ltd (BOM:500530) has launched innovative products, including connected solutions for vehicle protection and driver analytics, enhancing its market offerings.
Negative Points
- The automotive industry saw a 1% decline in Q2 FY25 compared to Q2 FY24, attributed to high base effects and unfavorable conditions.
- The passenger car segment struggled with high inventory levels and weak consumer demand, impacting growth despite moderate retail gains.
- The commercial vehicle segment faced pressure due to slow infrastructure projects and decreased fleet utilization, affecting overall performance.
- The profit after tax was impacted by a one-time exceptional item in the previous year, leading to a lower percentage of revenue from operations in the current quarter.
- The company faces challenges in the independent aftermarket due to lower demand in the diesel space category, affecting certain business lines.
Q & A Highlights
Q: How is Bosch Ltd preparing for the localization of components for the upcoming Trentin norms set to be implemented in April 2026?
A: Unidentified_2 (Managing Director and Chief Technology Officer): Bosch is well-prepared to handle the localization for Trentin norms, aiming for a higher level of localization from the start. The company is ready to meet industry demands assuming no further postponements occur.
Q: There has been a decline in the share of traded goods this quarter. Is this due to localization benefits or lower contributions from the CV segment?
A: Unidentified_4 (Chief Financial Officer): It is a mix of both factors. The favorable product mix and ongoing localization efforts have contributed to the decline in traded goods. However, localization is an ongoing process and not yet complete.
Q: What is the CapEx guidance for the full year, given that the first half CapEx was about 100 crores?
A: Unidentified_4 (Chief Financial Officer): The CapEx for the year is expected to be slightly lower than last year, around 400 crores, due to the completion of the other body camp. The third and fourth quarters will see more capitalized CapEx as machinery implementation progresses.
Q: How is Bosch Ltd prepared to handle the potential double-digit growth in the tractor segment and the transition to new emission norms?
A: Unidentified_2 (Managing Director and Chief Technology Officer): Bosch is well-prepared to handle additional volumes and transitions, working closely with OEMs to anticipate and meet demands. The company is ready to support capacity needs during these transitions.
Q: What is Bosch's role in the hybrid vehicle segment, and how is it preparing for potential policy support for hybrids?
A: Unidentified_2 (Managing Director and Chief Technology Officer): Bosch is in discussions with several OEMs regarding hybrids. While some models are already in the market, Bosch is prepared to support hybrid technology, although there is no confirmed policy support yet.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
