Bosch Home Comfort India (523398) Q4 97/98 earnings summary

Executive summary

• FY98 revenue from operations was Rs 1,133,400 thousand; profit after tax was Rs 31,235 thousand, versus Rs 1,061,891 thousand and Rs 37,089 thousand in FY97.

• Market share increased in airconditioning, with growth described as twice the industry average; the second half saw improved demand after a stagnant first half.

• The April 1998 strategic alliance with Hitachi expanded the joint Amtrex-Hitachi room airconditioner range and supported manufacturing and design upgrades.

Financial highlights

• Income from operations was Rs 1,133,400 thousand in FY98, versus Rs 1,061,891 thousand in FY97; finished-goods sales were Rs 1,067,051 thousand versus Rs 959,792 thousand.

• Profit before tax and extraordinary items was Rs 31,235 thousand, down from Rs 37,089 thousand in FY97; net profit was Rs 31,235 thousand versus Rs 37,089 thousand.

• Net interest and financial charges fell to Rs 34,326 thousand from Rs 38,440 thousand; depreciation rose to Rs 17,430 thousand from Rs 9,275 thousand.

• Operating cash flow was Rs 72,064 thousand, versus Rs 63,563 thousand in FY97; cash and cash equivalents ended FY98 at Rs 36,641 thousand, down from Rs 45,604 thousand.

• Proposed dividend was Rs 1.50 per equity share of Rs 10 face value; reported EPS was Rs 3.29 and dividend rate 15%.

Outlook and guidance

• First-two-month growth in FY99 exceeded 50%, described as among the highest in the industry; airconditioner market growth was about 30% during that period.

• Despite strong early demand, economic and political uncertainty could moderate full-year industry growth to 15–20%; plans target further market-share gains and higher growth.

• Commercial refrigeration was expected to contribute significantly as Visicooler and Chest Cooler production ramped up and demand for fountains and spares revived.

• Planned priorities included new joint-brand models, quality and manufacturing upgrades, and focused product development and marketing for packaged airconditioners.