Bosch Home Comfort India (523398) Q4 2001 earnings summary

Executive summary

• 18-month period ended 30 Sep 2001 followed a change in fiscal year-end to align reporting with the air-conditioning business cycle; results are not strictly comparable with the prior 12 months.

• Revenue was Rs 3,603.24m; net loss was Rs 180.59m, and no equity dividend was proposed.

Financial highlights

• Sales and service income was Rs 3,571.20m; other income was Rs 15.40m, including Rs 16.64m profit on sale of investments.

• Loss before depreciation, interest and tax was Rs 42.13m; depreciation was Rs 53.92m and net finance costs were Rs 84.55m.

• Operating cash flow was negative Rs 60.80m; cash and bank balances fell to Rs 55.41m at 30 Sep 2001 from Rs 60.70m at 31 Mar 2000.

Outlook and guidance

• Air-conditioning penetration was ~1%; management cited long-term Indian market potential and expected VAT and indirect-tax reforms to improve affordability and industry competitiveness.

• Cost-reduction, productivity, product-efficiency and reliability initiatives were underway; the business was positioned to address competition and pursue emerging market opportunities.