Bosch Q1 profit jumps 22.4% YoY to Rs 408.9 crore; stock rises 2%

Shares of Bosch jumped nearly 2 percent in early trade on August 1, post solid Q1 results. At 9:50 am, the Bosch stock was trading 1.01 percent higher at Rs 19,190 on NSE. The technology and services provider has recorded a 22.4 percent year-on-year growth in consolidated profit at Rs 408.9 crore for the quarter ended June FY24 despite weak operating margin, backed by higher other income and top-line.

Revenue from operations grew by 17.3 percent year-on-year to Rs 4,158.4 crore during the quarter mainly due to increased sales of exhaust gas temperature (EGT) components in passenger cars and in the commercial vehicle segment, the company reported in an exchange filing on July 31.

Follow our live blog for all the market action

At the operating level, EBITDA increased 4.1 percent to Rs 467.9 crore in the first quarter of this fiscal over Rs 449.4 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 11.3 percent in the reporting quarter as compared to 12.7 percent in the corresponding period in the previous fiscal.

EBITDA is earnings before interest, tax, depreciation, and amortization. The Profit Before Tax (PBT) stood at Rs 533 crore, which is 12.8 percent of total revenue from operations, an increase of 21.7 percent increase over the same quarter of the previous year.

Also Read: UPL sinks to 52-week low as brokerages paint bleak growth picture

Groowth factors

The powertrain solutions business registered a growth of 12.5 percent over the same quarter of the previous financial year, outperforming the overall automotive market growth. This has resulted in an increase of 13.6 percent in the product sales of the automotive segment.

The weakening of demand due to the global economic crisis has helped better distribution of semiconductor supplies across the world. As a result, the two-wheeler business has experienced a remarkable sales recovery, with a substantial growth of 42.8 percent compared to the same quarter last year, the company said.

The beyond mobility business, driven by continued growth in consumer products and significant government investments in infrastructure, recorded a 21.5 percent increase in net sales over the same quarter of the previous financial year.

Guruprasad Mudlapur, managing director, Bosch and president of Bosch Group in India, said, “With India emerging as a promising market and our focus on green hydrogen and innovative automotive offerings, Bosch is well-positioned for growth and success in the year ahead.”

Meanwhile, brokerage firm Motilal Oswal has given a ‘neutral’ rating to the stock owing to the current valuations in a post results report. Whereas brokerage house ICICI direct is bullish on Bosch and has recommended ‘buy’ rating on the stock with a target price of Rs 20,970 in its research report dated March 13, 2023.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.