Bosch Home Comfort India (523398) Q4 2004 earnings summary

Executive summary

• Revival Plan Phase I sharply reduced losses and returned operations to profit for the 12 months ended 31 March 2004; the full 18-month period still closed with a net loss.

• Strategy shifted from room ACs alone to total AC solutions, with cost restructuring, outsourced manufacturing, product launches and export growth supporting recovery.

Financial highlights

• Total income was Rs 2,812.535 million and net loss was Rs 248.278 million for the 18 months ended 31 March 2004; no dividend was recommended.

• Operating profit before depreciation, interest and tax was Rs 56.65 million for the 12 months ended 31 March 2004, versus an operating loss of Rs 207.90 million in the prior 12 months.

• Export sales rose more than 600% during the period; confirmed orders covered the first six months of the coming year.

Outlook and guidance

• Phase II will emphasize brand, product and supply-chain strategies; targeted return to profitability by the end of the next financial year.

• AC industry growth is forecast above 15% over the next three years; export volumes were expected to double after the prior period’s strong growth.

• New Hitachi ATOM models and a greater focus on packaged ACs, chillers and Set Free systems were expected to support sales and market share.