Bosch India (BOSCHLTD) Q4 1997 earnings summary

Executive summary

• FY1997 sales rose 18% to Rs 13,732.2m; profit before tax was Rs 1,275.0m, or 9.3% of turnover, matching the prior-year margin.

• Business weakened from Q4 1997, particularly in original-equipment supplies, amid lower commercial-vehicle production; January–February 1998 sales were 8.5% below the prior-year period.

Financial highlights

• Sales were Rs 13,732.2m versus Rs 11,636.1m; export sales were Rs 1,905.9m versus Rs 1,416.7m.

• Profit before tax was Rs 1,275.0m versus Rs 1,075.5m; tax provision was Rs 600.0m and profit after tax was Rs 802.5m versus Rs 609.0m.

• PAT included Rs 129.8m of other items, mainly Rs 129.4m of excise, warranty and other provisions written back; investment-sale/redemption profit was Rs 0.4m.

• Directors recommended a dividend of Rs 26 per share, up from Rs 24 per share.

Outlook and guidance

• No near-term recovery was visible as of the report date, with OE supplies particularly affected by weaker commercial-vehicle production.

• Development priorities included electronically controlled diesel injection, emission- and fuel-economy improvements, distributor pumps, passenger-car auto electricals, tractor alternators and two-wheeler spark plugs.

• A Jaipur production hangar was expected to be ready by Q4 1998; civil work had commenced.