Bosch Home Comfort India (523398) Q4 96/97 earnings summary

Executive summary

• FY ended 31 Mar 1997: income from operations rose to Rs 1,061,891 thousand from Rs 877,416 thousand; net profit was Rs 37,089 thousand versus Rs 40,829 thousand.

• Market share was maintained despite sluggish consumer durables demand; packaged air-conditioning performed well, while new products expanded into commercial refrigeration and chillers.

Financial highlights

• Income from operations Rs 1,061,891 thousand vs Rs 877,416 thousand; other income Rs 7,048 thousand vs Rs 3,875 thousand.

• Profit before interest, depreciation and taxes Rs 84,804 thousand vs Rs 71,740 thousand; net profit Rs 37,089 thousand vs Rs 40,829 thousand.

• Interest expense increased to Rs 38,440 thousand from Rs 24,030 thousand; depreciation was Rs 9,275 thousand vs Rs 6,881 thousand.

• Operating cash flow was Rs 63,563 thousand vs Rs 4,973 thousand; net cash increased by Rs 2,131 thousand during FY97.

Outlook and guidance

• Despite continued sluggish demand early in FY98, market share was expected to hold; lower excise duty, from 40% to 30%, and reduced customs duties were expected to support demand and costs.

• Financial performance was expected to improve; the soft-drink fountain market was forecast to grow 10%–15% in FY98 and subsequent years.

• Commercial production of Visi-Coolers at the Changodar facility was expected to begin by Jan 1998, subject to model approvals.