Bosch India (BOSCHLTD) Q4 2002 earnings summary

Executive summary

• FY 2002 net sales rose 6.9% and profit after tax increased to Rs 1,340.6m from Rs 817.2m, supported by export growth, commercial-vehicle recovery and stronger operating performance.

• Export share of turnover rose to 16.1% from 13.3%; profitability improved despite weak global automotive conditions and declining tractor demand.

Financial highlights

• Net sales were Rs 15,507.1m vs Rs 14,512.9m; export sales reached Rs 2,489.5m vs Rs 1,928.4m, up 29% YoY.

• PBT was Rs 2,004.6m vs Rs 1,290.1m; PAT rose to Rs 1,340.6m from Rs 817.2m.

• Final dividend recommended at Rs 40/share, in addition to the Rs 3/share interim dividend; prior-year final dividend was Rs 31/share.

• Depreciation declined to Rs 1,072m from Rs 1,334m, partly reflecting lower capital expenditure; materials cost as a percentage of sales also declined.

Outlook and guidance

• Management viewed 2003 with cautious optimism, expecting the automotive recovery to continue absent external shocks; Middle East uncertainty could weigh on demand and exports.

• Commercial-vehicle demand was expected to remain supported by infrastructure activity and lower interest rates; tractor-volume decline was expected to continue in 2003.

• Products were being developed for Bharat Stage II norms due nationwide from 2005, alongside preparation for Common Rail and Euro II/III requirements.