About the Company:
Bosch Limited is a holding company. The Company operates in the manufacturing and trading of automotive products. Its segments include Automotive Products and others. The Company offers products, including fuel injection equipment and components, injectors, nozzles and nozzle holders, and starter motors and generators. The Company has presence across automotive technology, industrial technology, consumer goods and energy and building technology. It manufactures and trades in products, such as diesel and gasoline fuel injection systems, automotive aftermarket products, starters and generators, industrial equipment, packaging machines, electrical power tools, security systems, and industrial and consumer energy products and solutions. The Company's manufacturing facilities are located in Bengaluru, Nashik, Naganathapura, Jaipur, Goa, Gangaikondan, Chennai and Bidadi. The Company's subsidiary is MICO Trading Private Limited.
QoQ & YoY Performance:
Bosch Ltd. has declared Statement of consolidated financial results for quarter and year ended on March 31st, 2020.
- Net Profit After Tax: The company’s Net profit during the quarter fell by 32.05% stood at Rs 8114.00 Lakhs in March 2020 as against Rs 11,941.41 Lakh in December 2020. As well as plunged more than 80% on YOY.
- Net Revenue: Net sales figures fell by 18.06% to Rs 2,23687 Lakhs during the period ended March 31, 2020, compared to Rs. 2,72,991.00 crores during the period ended March 31, 2019. And sales figures plummeted by 11.82% on QoQ basis.
- EBITDA Margins: The company’s EBITDA margins also disappoints in Q4FY20 where it stands at 21.54% against the same year before of 25.02%.
- PAT Margins: PAT Margins reported in Q4FY20 at 3.63% against 15.19% in the same quarter last year.
- Business development in FY 2019-20 Bosch Limited’s Mobility business sector declined by 24.4 percent in 2019-20, due to slowdown in the auto segment. Domestic sales declined by 25.9 percent and export sales declined by 6.1 percent. Within the Mobility segment, the Powertrain Solutions business registered a decline of 30.2 percent owing to low performing automotive market. Business beyond Mobility solutions has recorded a decline of 14.4 percent.
- Recommended a Dividend of INR 105/- (Indian Rupee One hundred and Five only) per equity share of INR 10 each, for the financial year ended March 31, 2020.
- Bosch Limited: Outlook for fiscal year 2020-21 : Speaking about the outlook for the upcoming fiscal year, MD of the company commented: “As a leading automotive technology company with 80 percent of our revenues driven through mobility business, we have been affected severely. We welcome the Prime Minister’s announcement of INR 20 lakh crore economic package and hope to see some light towards economic growth. We are still awaiting to receive further guidance on industry-specific stimulus package that will support the auto sector.”
The Bosch Ltd. stock closed at Rs. 9,533.65 per share. As per Lokesh Sethia, SEBI Registered Research Analyst, with view of the coronavirus pandemic, Bosch anticipates considerable challenges for the global economy in the current business year. To achieve at least a balanced result, will take a supreme effort. The auto parts & equipment company has posted a disappointing business result for Q4FY20. Though at this price stock seems good pick as now demand will pick as there is some relaxations given by government. Hence, we recommend it to “BUY” for the target of 10,580 levels for the long term.