Bosch India announced that it has concluded FY23 with revenues of INR 14,929 crore, representing a 26.7% YoY growth over the last fiscal. Profit After Tax stood at INR 1,425 crore. The total capital investments for the year, including capital work-in-progress, amounted to INR 751 crore, with a significant portion allocated towards the development of Spark. NXT campus in Adugodi, Bengaluru.
A press release from the company noted that its Mobility Solutions business sector reported a 30% increase in product sales during the year under review, largely driven by a 22% growth in the overall automotive sector.
This growth was further supported by an increase in the share of content per vehicle, particularly in exhaust gas treatment. Domestic sales for Bosch Limited also rose by 27.5%, the release added.
Within the Mobility Solutions business sector, the Powertrain Solutions division in India saw a 35.9% increase, while the sales of the two-wheeler business grew by 15%, particularly in exhaust sensors and fuel injectors segments due to improved supply of semiconductors.
Additionally, the Automotive Aftermarket division rose by 15.3%, and the Beyond Mobility Solutions sector recorded a 14.1% increase in sales. The Board of Directors has recommended a final dividend of INR 280 per share for the financial year 2022-23, bringing the total dividend for the year to INR 480 per share, including an interim dividend of INR 200 per share.
Soumitra Bhattacharya, Managing Director, Bosch Limited and President, Bosch Group, India, noted that 2022 was a historic year as the company celebrated 100 years in India and at the same time, it was a year replete with challenges in the market.
He added that despite all odds, the company concluded the year with strong performance and positive revenue growth. “This was primarily fueled by the solid recovery in the auto market post pandemic,” he said.
Outlook For FY24
The President said that the company recognises the pressing need for both - software technologies and sophisticated hardware- in the Indian automotive industry.
He noted, that ICE will remain the dominant technology in the passenger car segment, even as the transition to electrification is already underway.
Sharing his outlook for the current fiscal, Bhattacharya said, “We recognise the challenges that lie ahead due to the ongoing uncertainty caused by certain macro factors. Despite these challenges, we remain optimistic about the automotive market, which saw record production volumes in FY23.”
During the fiscal, the company saw good acquisition of projects catering to the TREM5 and OBD2 regulations resulting in a strong order book for the next three to five years. “At Bosch Limited, we are confident in our ability to navigate these headwinds, particularly as we continue to see an increase in content per vehicle due to components supplied for exhaust gas treatment and implementation of BS6 stage 2. With this in mind, we expect total revenue from sales to grow around 15%,” the President said.
Group’s Performance For FY23
In 2022, the company exceeded its business targets in a challenging year, the company said. The supplier of technology and services increased its total sales to €88.2 billion, and the EBIT margin from operations rose from 4.0% to 4.3%.
Dr Stefan Hartung, Chairman, Board of Management, Robert Bosch GmbH, said, “We rose well to the challenges of 2022 – both our sales and our margin were higher than expected.”
Despite the after-effects of the COVID-19 pandemic, the company noted that it was able to increase its sales by 3.5% in the first quarter of 2023. Despite the modest economic outlook, the company is aiming for sales growth of between 6-9% for the whole year 2023.
Even if the economic and social environment remains demanding, the company wants to grow significantly faster in the coming years. “Our aim is to grow in every region of the world and to be among the leading three suppliers in our relevant markets,” Dr Hartung said.
The fight against climate change is causing considerable upheaval in business and society and accelerating technological change. “This technological transformation is opening up growth opportunities that we want to seize. In this context, our ‘Invented for life’ ethos is ideal – not only when it comes to the major trends of electrification, automation, and digitalisation, but more than ever also with respect to software and artificial intelligence,” the Chairman said.
Bosch is responding to this trend toward software-based automotive engineering by realigning its automotive-supply business: within Robert Bosch GmbH, Bosch Mobility will, in the future, be managed as a business sector with responsibility for its own business and its leadership team.
The aim is to serve existing and new customer needs better and faster with customised solutions from a single source. The Bosch Chairman announced that the newly restructured mobility business is set to grow annually by an average of roughly 6% up to 2029 when it will achieve annual sales of more than €80 billion.
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