Bosch India (BOSCHLTD) Q4 2001 earnings summary

Executive summary

• FY2001 sales fell 2.8% YoY to Rs 16,062.8m; PBT was Rs 1,290.1m and profit after current tax was Rs 708.2m.

• Demand weakness across automotive, export and aftermarket customers prompted plant closures, fewer working days, cost controls, inventory reduction and a 568-employee voluntary retirement scheme.

• Profit before appropriation was Rs 817.2m, including a Rs 109m deferred tax credit; a dividend of Rs 31 per share was recommended, unchanged YoY.

Financial highlights

• Sales were Rs 16,062.8m versus Rs 16,522.6m in 2000; export sales were Rs 1,928.4m versus Rs 1,998.5m, down 3.5% YoY.

• PBT before other items fell to Rs 1,235.2m from Rs 1,582.6m; PBT after other items was Rs 1,290.1m versus Rs 1,434.4m.

• Profit after current tax was Rs 708.2m versus Rs 811.9m; deferred tax credit of Rs 109m lifted profit before appropriation to Rs 817.2m.

• EPS was Rs 240; adjusted EPS excluding the deferred-tax impact was Rs 208. Prior-year profit before appropriation included a Rs 308.9m net-of-tax inventory revaluation adjustment.

Outlook and guidance

• No major improvement in the domestic automotive market was foreseen for 2002; global automotive recession was expected to continue, limiting export growth.

• Priorities included market-share gains, new export products sourced from other Bosch locations, cost reduction, restructuring, and improved asset and employee productivity.

• Investment in electronic diesel injection capability remained dependent on government policy for implementing emission norms.