Bosch India (BOSCHLTD) Q4 2009 earnings summary

Executive summary

• 2009 net sales rose 4.6% to Rs 47,497.7 million, while PBT fell to Rs 7,934.1 million and PAT to Rs 5,906.4 million amid a weak first half and lower profitability.

• Second-half automotive recovery and growth in Automotive Aftermarket, Gasoline Systems, Power Tools and Packaging offset first-half weakness.

Financial highlights

• Net sales were Rs 47,497.7 million versus Rs 45,416.5 million in 2008; export sales fell to Rs 5,854.6 million from Rs 6,844.5 million.

• PBT declined to Rs 7,934.1 million from Rs 8,565.7 million; PAT fell to Rs 5,906.4 million from Rs 6,338.7 million.

• Basic and diluted EPS was Rs 187 versus Rs 198; other income included Rs 923.5 million profit on sale/redemption of investments.

• Lower operating profit reflected unfavorable exchange rates, flat automotive growth and a one-time expense; treasury income partly offset the decline.

Outlook and guidance

• The automotive industry was cautiously expected to grow 16% in 2010; the stated objective was to return to growth rates seen in 2007 and earlier.

• BS III and BS IV standards were expected in 2010; product mix and customer call-off schedules required close support during the transition.

• Low-price vehicles, infrastructure investment, organized retail and recovery in real estate were identified as growth opportunities.