Bosch India (BOSCHLTD) Q4 1998 earnings summary

Executive summary

• FY1998 sales fell 5.5% YoY to Rs13,732.2m; PBT declined to Rs1,008.7m and PAT to Rs698.6m amid sluggish markets and customer weakness.

• Operations expanded product development and aftermarket reach, while the January 1999 Bangalore plant fire disrupted diesel fuel-injection equipment production; physical damage and lost profits were insured.

Financial highlights

• Sales were Rs13,732.2m vs Rs12,981.7m in 1997; export sales were Rs1,905.9m vs Rs1,921.2m.

• PBT was Rs1,008.7m vs Rs1,275.0m; tax provision was Rs480m vs Rs600m; PAT was Rs698.6m vs Rs802.5m.

• Reported PAT included Rs148.9m in other items: Rs118.6m of excise, warranty and other provisions written back and Rs30.2m profit on investment sales/redemptions.

• Other income rose to Rs322.6m from Rs228.3m; interest expense net of interest received declined to Rs81.7m from Rs114.7m.

Outlook and guidance

• Diesel product development targeted Indian emission legislation effective April 2000 and export standards Euro II for vehicles and US Tier I for tractors.

• An Application Development Center was under construction, targeted to operate by mid-2000, supporting electronic diesel control, auto electricals and petrol-injection applications.

• Sitapura, Jaipur plant was established to address expected rotary diesel injection pump growth from 2000 and expand exports; Blaupunkt car-stereo manufacture was proposed at Naganathapura, subject to shareholder approval.