Bosch Home Comfort India (523398) Q4 99/00 earnings summary

Executive summary

• FY ended 31 Mar 2000 returned to net profit of ₹34.9m from a ₹73.1m loss; operating income rose 33% to ₹1,809.2m.

• Hitachi air-conditioner launches and stronger service activity supported growth, while commercial refrigeration doubled turnover and became profitable.

Financial highlights

• Income from operations was ₹1,809.2m versus ₹1,361.6m; total income including other income and stock changes was ₹1,843.9m versus ₹1,422.7m.

• Profit before tax was ₹36.9m versus a ₹73.1m loss; net profit was ₹34.9m versus a ₹73.1m loss.

• Manufacturing and other expenses rose to ₹1,736.2m from ₹1,427.1m; interest and finance charges declined to ₹34.2m from ₹41.4m.

• Directors recommended a ₹1.00/share dividend, equal to 10% of the ₹10 face value; proposed dividend totaled ₹14.7m.

Outlook and guidance

• Household air-conditioner demand was growing steadily; Hitachi technology and products were expected to support market expansion and brand positioning.

• Profitability remained under pressure despite sales growth; planned responses included higher volumes and cost reduction, with price pressure expected to continue through the year.

• Planned launches included Set-Free VRV systems with inverter scroll compressors and air-cooled packaged chillers, sourced from Hitachi for local marketing and service.

• Internet sales, upgraded ERP and vendor communications were being explored to expand reach, reduce transaction costs and improve customer response.