Bosch Limited — Q1 FY24
Bosch Limited reported Q1 FY24 revenue of INR 4,158 crore, up 17.3% YoY, driven by growth in mobility solutions (13.6%) and beyond mobility (21.5%).
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Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
38%Questions answered5Evaded / deflected12Questions audited
Partial answer
High priority
Spark plug export opportunity and other areas for exports
Asked by Pramod Amthe, InCred Equities
Confirmed the trend but refused to name specific product areas for export expansion.
declined to specify other areasno timeline given
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Question
Can you just tell, is this a trend that you have one of the low cost production base and long-standing in this business, and it's opening up an opportunity? Which all areas India is components you feel such opportunity can emerge for Bosch India for exporting to the global markets in the next 1-2 years?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
Yes, indeed, you are right. The timing is right for us. Also, there have been some shifts of our production out of Russia, so a lot of spark plugs, which were earlier made in our Russian location, have moved out, and they've been relocated into India... There is a possibility that this phenomenon will extend to other areas. We are in discussions right now... I would not like to comment on any specific area that we may extend this to.
Evasive
High priority
Gap in winning EV orders like eAxle vs competitors
Asked by Pramod Amthe, InCred Equities
Claimed no gap but gave no concrete steps or timeline to win orders.
denied gap existsno specific plan or timelinevague alignment process
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Question
Bosch has a similar product lines globally and enjoys amazing customer relationship in India for many of the clients. So wanted to know, where is the gap in terms of when you see to win such orders versus others already having it in the bag? How you plan to cover those gaps in the next 1-2 years to make inroads into EV orders?
Nelamangala Sandeep, Joint Managing Director
I think on the eAxle portfolio, we as Bosch, have quite a widespread portfolio, globally... The market in India is in a formative phase, and we are basically trying to align best the portfolio... I don't see a gap, but this would take time before we are able to bring together the specifications of the global platforms and the local requirements.
Evasive
High priority
Will eAxle be in listed entity or unlisted?
Asked by Dinesh Gangwani, Mahindra Finance
Did not answer whether eAxle would be in listed entity; deflected to early stage.
deferred decisionno clarity on entity
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Question
Just continuing on eAxle, just to clarify, would eAxle be opportunity coming in the listed entity, given it's not, per se, powertrain related, or would it be part of the unlisted entities?
Nelamangala Sandeep, Joint Managing Director
Well, we are, at the moment, first focusing on, like I mentioned, very generic level, the requirements engineering, which includes multiple domains. We are yet to get to this point about where would the technology lie.
Partial answer
High priority
Margin outlook from current 11-12% level
Asked by Dinesh Gangwani, Mahindra Finance
Explained margin drivers but did not give a forward-looking margin range.
no specific margin guidanceattributed to mix
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Question
Given many of the headwinds which we faced over the last few years are going away, plus we are seeing ramp-up in our BS6 localization solution. How should one think about margins from where we are today?
Karin Gilges, Chief Financial Officer
If you look at the margins, and if you are looking at the margins in the ICE business for manufactured goods here in India... we are seeing actually that we have for the self-manufactured goods, quite good margins on the market. We also have to see that in the overall operating margin of the 9%, we have currently a high part of traded goods... What we are doing looking forward, we are investing and going ahead with the localization.
Answered
Medium priority
Are one-off expenses matched by service income?
Asked by Dinesh Gangwani, Mahindra Finance
Confirmed the matching of one-off expenses and service income.
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Question
We are calling out for one-off expenses for the service part, that there is a commensurate benefit on the service income, right? Both will go away as things normalize.
Karin Gilges, Chief Financial Officer
Yes. If you look at the higher spendings, we also have to see the other part, we have higher income from service. That means whenever we see in the revenues, the service income, then we book it, also, of course, the related spendings with it.
Answered
Medium priority
Quantify one-off expenses in other expenses
Provided specific percentage point impacts on other expenses.
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Question
Can you quantify the one-off expenses included in the other expenses?
Karin Gilges, Chief Financial Officer
There are actually, one important point, and this is the new business expenditures... the professional charges, which is the spendings to the higher service income, is about 1.3 percentage points, and the spendings in the new business expenditures is roughly 0.6 percentage points.
Evasive
Medium priority
Are current gross margins the new normal?
Declined to answer on gross margins directly; shifted to EBIT and mix.
refused to discuss gross marginsdeflected to EBIT and mix
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Question
Our current gross margins are the lowest ever. Is this the new trend or new normal?
Karin Gilges, Chief Financial Officer
In principle, we do not talk about gross margins at all. As I mentioned before, what we saw in the last quarter, that we have a jump in the traded goods... traded percentage from total of 54.4 percentage points, versus the same quarter in the last year of 51.3%. This is, of course, influencing then also the EBIT.
Partial answer
Medium priority
Does Bosch have supply agreement with Tesla?
Confirmed global supply but gave no specifics on India potential.
no commitment on India opportunityspeculative
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Question
Does Bosch Group has any supply agreement with Tesla? If Tesla enter India, will that open up opportunities for Bosch India?
Nelamangala Sandeep, Joint Managing Director
I think Bosch has a business relationship with Tesla, primarily in the U.S. and partly in China, but these are more in braking and wiper components. Let's follow up on what happens with the Tesla plans in India and their value chain, and we will align accordingly.
Evasive
High priority
Can margins improve from Q1 levels?
Did not give a directional answer; attributed to mix without forecast.
no clear guidancedepends on mix
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Question
Can we expect margins to improve from Q1 levels, or it will remain flattish?
Karin Gilges, Chief Financial Officer
Once again, the margins or the overall EBIT, EBITDA is highly influenced by the mix we have between traded and manufactured goods... Overall, if you say, yes, margins are stable, but of course it depends, what is the setup or the product portfolio behind the revenue?
Partial answer
Medium priority
Rationale for selling Project House Mobility Solutions
Explained rationale but omitted requested financials for the segment.
did not provide sales/EBITDA figures
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Question
Can you please highlight the rationale behind the rationale for business transfer of Project House Mobility Solutions? What do we do here in this business segment, and last year sales and EBITDA for this segment?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer
The Project House for Mobility Solutions... we realized that this requires global scale and global expansion... As Bosch Limited, we are chartered to take care of the India business, and we're not really focused on the global part of the business. Primarily, this was the reason that we decided that it's better to sell the business to our parent.
Evasive
Medium priority
Tractor segment revenue share and TREM V outlook
Refused revenue breakdown and gave only vague speculation on TREM V.
declined to share segment revenueno specific timeline for TREM V
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Question
In the tractor segment, broadly, how much % of Bosch revenue is from tractor segment? What is the outlook for FY 2024 and 2025? Also, the associated with that, emission norm change in track, tractor segment, TREM IV, has been implemented. When is TREM V expected?
Nelamangala Sandeep, Joint Managing Director
We do not share details of segment-level revenue and so on. On the TREM V, currently, we are all prepared for in terms of technology... The chance of a postponement or a chance of introduction of TREM V, I mean, I do not want to speculate, but it looks more and more certain that there will be further postponement of TREM V legislation.
Partial answer
Medium priority
Two-wheeler electric powertrain scope and market share
Asked by Senthil Manikandan
Described product focus but did not quantify market share or business acquisition.
no market share or revenue quantification
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Question
First question is with respect to the two-wheeler segment, from the electric powertrain side. What's the scope going forward over the next two to three years? What kind of components that Bosch plans to add to this segment?
Nelamangala Sandeep, Joint Managing Director
Like I mentioned earlier, I think in the electrified scooter space, we would primarily focus on in-hub motors in the range of 2-3 KW power range, along with the motor control unit. That would be the focus of portfolio from a Bosch side on the electrified two-wheelers.