Bosch Home Comfort India (523398) Q4 98/99 earnings summary

Executive summary

• FY99 sales rose 20% YoY to Rs 136.16 crore, but operating conditions and investment losses drove a net loss of Rs 7.31 crore; no equity dividend was proposed.

• Hitachi’s equity participation and technical collaboration supported a strategic focus on air-conditioning, with plans to divest commercial refrigeration and expand Hitachi-brand offerings.

Financial highlights

• Sales were Rs 136.16 crore, up 20% YoY from Rs 113.34 crore; sales and other income totaled Rs 136.997 crore.

• Operating loss before tax was Rs 2.35 crore; net loss was Rs 7.31 crore versus prior-year net profit of Rs 3.12 crore.

• Loss included Rs 4.96 crore of extraordinary investment losses; the commercial refrigeration business recorded a Rs 2.08 crore loss in its first operating year.

• Interest and financial charges were Rs 4.14 crore, and depreciation was Rs 2.31 crore.

Outlook and guidance

• Four Hitachi-brand models launched in the current year received a positive market response; further model launches were planned for coming years.

• Manufacturing, product development and quality facilities were slated for investment and upgrades; brand building, advertising, sales, service and distribution were also priorities.

• Hitachi branding and upgraded capabilities were expected to support market-share gains and improved overall performance; commercial refrigeration was expected to improve financially.

• Year 2000 systems were expected to be compliant by September 1999; project expenditure was capped at Rs 18 lakh.