Consequent to the poor performance of the automotive industry in India due to COVID-19, Bosch Limited – the flagship company of the Bosch Group in India, has ended its FY21 with a drop in the revenue from operations.
While the overall vehicle production dropped by 13% during the year under review, the company managed to register a total revenue from operations of INR 9,718 crore, thus registering only a marginal decline of 1.3% compared to the previous fiscal. Profit After Tax (PAT) stood at INR 482 crore.
The company’s Mobility Solutions business sector increased by 2.4% in 2020-21, amidst lockdown in April and part of May 2020. Domestic sales increased by 1.2%. Within the Mobility Solutions sector, the Powertrain Solutions division registered an increase of 1.8%. Business beyond Mobility solutions has recorded a decline of 11.7%.
Soumitra Bhattacharya, Managing Director, Bosch Limited and President of Bosch India, said, “Despite facing a spell of near-zero sales in the month of April and May in 2020, there has been a significant increase in the demand from the agriculture sector, mainly the tractor business. The industry showed continued signs of recovery since the second quarter of FY21, however, it remains impacted due to the uncertainties in the market. International market volatilities in the supply chain will also continue to impact the auto sector. Furthermore, we have seen growth in the Power Tools segment, especially in the construction and e-commerce sectors.”
The company has earmarked a CAPEX of about INR 200 crore for the current fiscal, he added.
Outlook for FY22
Bhattacharya said the FY21 was one of the most turbulent years for the country, the world, and the automotive industry.
“We have been able to put in a turnover which is almost equivalent to the previous year and a decent profit. The period between January and March 2021 has been exceptional for the automotive industry, which grew at 26%, while Bosch Limited grew 44%. The Q1 FY22 will see huge turbulence for India and the automotive industry, especially with various lockdowns in various states, cities, and districts. Supply chains will get disrupted. We are hoping and expecting that the curve will come down significantly. After this quarter we should see better times. We are working currently on scenarios, and we are investing not only for the current, but also for the future.”