Bosch Home Comfort India (523398) Q4 2002 earnings summary

Executive summary

• FY02 air-conditioner volume growth exceeded the market, lifting organized-sector share to 14%; aggressive price reductions amid intense competition resulted in a net loss.

• Hitachi Home & Life Solutions acquired majority ownership after year-end and set a priority of returning to profitability through cost reduction and operating efficiencies.

Financial highlights

• FY ended 30 Sep 2002 total income was Rs 1,999.67m; net sales from manufacturing were Rs 1,812.74m, trading sales Rs 79.42m and service income Rs 90.29m.

• Loss before depreciation, interest and tax was Rs 80.99m; net loss was Rs 205.15m, versus a Rs 180.59m loss for the prior 18-month period.

• Basic and diluted EPS was -Rs 13.99, compared with -Rs 12.31 for the prior 18-month period; no equity dividend was proposed.

Outlook and guidance

• Management targeted a return to profitability by the end of the next financial year through value engineering, global sourcing, value-chain cost reductions and stronger Hitachi brand value.

• Short-term outlook remained unpredictable, particularly during the October–January winter months; the new Logicool µ model was intended to support sales and market share.