Bosch India (BOSCHLTD) Q4 2005 earnings summary

Executive summary

• FY 2005 net sales rose 28% to Rs. 29,774.8 million; profit after tax fell 8% to Rs. 3,430.7 million as depreciation and material costs increased.

• Automotive OEM sales grew 44%, while non-automotive businesses also expanded; investment and production ramp-up centered on Common Rail technology.

Financial highlights

• Net sales were Rs. 29,774.8 million versus Rs. 23,277.2 million in 2004; export sales were Rs. 4,231.3 million versus Rs. 3,996.8 million.

• Profit before tax was Rs. 5,290.1 million, down from Rs. 5,635.4 million; profit after tax was Rs. 3,430.7 million versus Rs. 3,747.7 million.

• Gross sales reached Rs. 32,896.8 million; operating expenses rose to Rs. 9,396.1 million from Rs. 8,027.4 million.

• Depreciation increased to Rs. 1,980.9 million from Rs. 988.8 million, mainly reflecting investment in the Common Rail project; material cost as a share of sales rose by 7 percentage points.

Outlook and guidance

• Planned investment of approximately Rs. 10,000 million through 2008, mainly for automotive components and plant upgrades for products including Common Rail Systems.

• Common Rail Systems are expected to gain share as diesel passenger-car demand grows; the stated estimate was 60% of diesel applications within 8–10 years.

• Growth is expected to continue with economic and infrastructure expansion, but at a slower pace than the prior three years; raw-material supply and crude oil prices remain concerns.