Bosch Management Guidance Tracker

Capital expenditure planned for the current year is approximately INR 4.9 billion, mainly for plant machinery and equipment.

Management guided CapEx of INR 3.5 billion for FY24, mainly for localization in Common Rail and exhaust gas treatment.

Annual capital expenditure is expected to continue in the range of INR 400-600 crore, supporting localization and other investments.

Management guided for full-year CapEx of approximately INR 4,000 million (INR 400 crore), lower than last year due to completion of the auto body campus.

Management plans to localize production of exhaust-gas treatment components and injectors for commercial vehicles to improve margins.

Employee cost as a percentage of revenue is expected to be around 8% for the financial year, normalizing after provision reversals.

Localization of Common Rail and exhaust gas treatment components over the next 4-5 years is expected to improve gross margins.

Management anticipates moderate growth in FY25 due to election year dynamics, high base, and erratic rainfall.

Management expects slower market growth in 2024 due to high base, election uncertainties, and erratic rainfall.

Management expects moderate growth for FY25, with Q1 impacted by elections and liquidity crunch, but recovery from Q2 onwards.

Production of lambda sensors at Bidadi plant will ramp up from 1.2 million in 2021 to over 8 million annually by 2025.

Management expects FY25 growth to mirror FY24 levels, with moderate growth for the automotive industry despite high base and inventory buildup.

Management expects the Mobility Aftermarket division to grow at 8-10% in FY26, driven by diesel components, lubricants, and filters.

Company aims to outgrow industry via advanced technologies, new norms, and electrification.

Management reiterated commitment to increasing localization, with progress on track, though decisions depend on geopolitics and tariffs.

Bosch aims to continuously increase exports, leveraging competitiveness in certain products like knock sensors and injectors, but no specific target given.

The strong growth from OBD2 norms is expected to continue for the next two quarters before normalizing.

Management expects hydrogen technology to achieve 8-15% market penetration in heavy commercial vehicles by 2030.

Management expects passenger vehicles, tractors, and two-wheelers to achieve all-time high production levels in FY26, driven by strong economic fundamentals and supportive policies.

Management indicated Q4 FY24 may be flat or see very small growth.

Management expects FY2025 performance to be similar to FY2024, with moderate growth despite election and high base effects.

Management expects a slight increase in exports driven by NOx sensors, spark plugs, and injectors.

Sales in mobility aftermarket are expected to regain momentum in Q3 after GST 2.0 transition impact.

Management expects TREM V norms for tractors to be implemented in 2026, with Bosch fully ready.

Management expects PLI benefits to start flowing in 2024 after audits on domestic value-add.

The divestiture of the Building Technologies business is expected to be completed by Q1 or Q2 of 2025.

A one-time restructuring provision of INR 47.1 crore was booked in Q3 to improve competitiveness in the Mobility business; further adjustments may follow.

Bosch has clarified its dividend policy, targeting a payout ratio of 65%-80% of profit, subject to board discretion.

Start of production for localized exhaust gas treatment components is expected in April 2025.

First localization of exhaust gas treatment component (NOx sensor) will start production in April 2025, with further localization under discussion.

India is now one of five independent regions within Bosch Power Tools, responsible for SAARC markets, with focus on cordless tools and exports from Chennai plant.

Bosch is well prepared for TREM V norms (April 2026) with higher localization expected from the start, and capacity to handle pre-buy effects.

Ramp-up of OBD-II norms for two-wheelers is on track for April 2025, with Bosch supplying exhaust gas sensors and engine management systems.

New Gen3 line at Bidadi will scale to 2.1 million sensors annually by 2027, targeting global OEMs.

Bosch plans to localize DeNOx sensors and other Common Rail components, following the localization of NOx sensors in 2025.

Bosch plans to capitalize on EV trends in two-wheelers and three-wheelers, leveraging global portfolio and discussions with OEMs.

Bosch is in advanced discussions with several OEMs to supply e-axles for electric four-wheelers in India, with announcements expected in coming quarters.