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Policy delays in TREM V norms
View Risks →Bosch Limited — Q1 FY25
Bosch Limited reported Q1 FY25 revenue of INR 4,317 crore, up 3.8% YoY, with EBITDA margin improving 70 bps YoY to 12%.
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Bosch Limited reported Q1 FY25 revenue of INR 4,317 crore, up 3.8% YoY, with EBITDA margin improving 70 bps YoY to 12%. Growth was driven by Mobility Aftermarket (+8.1%), two-wheeler business (+14.6%), and Building Technologies (+19.4%). PAT grew 13.8% YoY. Management maintained a moderate full-year growth outlook despite election and heat wave headwinds. Key strategic developments include the elevation of Power Tools India to a regional hub and progress on localization of Common Rail and NOx sensors. Risks include potential policy delays (e.g., TREM V norms) and the gradual shift from diesel to EVs, which could impact legacy product volumes. Management refrained from giving explicit margin guidance, citing technology transition uncertainties.
बॉश लिमिटेड ने पहली तिमाही (अप्रैल-जून 2024) में 4,317 करोड़ रुपये का कारोबार किया, जो पिछले साल से 3.8% ज़्यादा है। कंपनी की कमाई पर खर्च घटाने के बाद बचत (EBITDA मार्जिन) 12% रही, जो पिछले साल से 0.7% बेहतर है। मोबिलिटी आफ्टरमार्केट (+8.1%), दोपहिया (+14.6%) और बिल्डिंग टेक्नोलॉजी (+19.4%) ने अच्छा प्रदर्शन किया। मुनाफा (PAT) 13.8% बढ़ा। चुनाव और गर्मी के बावजूद, कंपनी को पूरे साल मध्यम वृद्धि की उम्मीद है। पावर टूल्स इंडिया को क्षेत्रीय केंद्र बनाया गया और कॉमन रेल व NOx सेंसर का स्थानीय उत्पादन बढ़ रहा है। जोखिमों में नीतिगत देरी (जैसे TREM V नियम) और डीज़ल से EV की ओर बदलाव शामिल है, जिससे पुराने उत्पादों की बिक्री प्रभावित हो सकती है। कंपनी ने तकनीकी बदलावों के कारण मार्जिन का स्पष्ट अनुमान नहीं दिया।
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Read Transcript →Quarter Snapshot
Two-wheeler business growth
14.6%
+14.6% YoY
Two-wheeler segment grew 14.6% YoY driven by higher sales of fuel injectors and modules from TVS and Bajaj.
Mobility Aftermarket growth
8.1%
+8.1% YoY
Aftermarket grew 8.1% due to higher demand for new generation diesel components.
Lambda sensor production volume (2025 target)
8 million pieces
+567% vs 2021
Bosch targets annual production of over 8 million lambda sensors by 2025, up from 1.2 million in 2021.
Building Technologies growth
19.4%
+19.4% YoY
Building Technologies grew 19.4% on execution of higher number of security system installation orders.
What Changed vs Last Quarter
NEW
Full-year growth similar to FY2024
Management expects FY2025 performance to be similar to FY2024, with moderate growth despite election and high base effects.
NEW
Lambda sensor production to exceed 8 million pieces by 2025
Production of lambda sensors at Bidadi plant will ramp up from 1.2 million in 2021 to over 8 million annually by 2025.
NEW
Power Tools India becomes independent region
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.
UPDATED
NOx sensor SOP in April 2025
First localization of exhaust gas treatment component (NOx sensor) will start production in April 2025, with further localization under discussion.
DROPPED
Moderate growth expected in FY25 with Q1 slow due to elections
Management expects moderate growth for FY25, with Q1 impacted by elections and liquidity crunch, but recovery from Q2 onwards.
DROPPED
CapEx to remain in INR 400-600 crore range
Annual capital expenditure is expected to continue in the range of INR 400-600 crore, supporting localization and other investments.
DROPPED
Building Technologies divestiture expected by Q1/Q2 2025
The divestiture of the Building Technologies business is expected to be completed by Q1 or Q2 of 2025.
NEW RISK
Policy delays in TREM V norms
TREM V implementation for tractors has been postponed, potentially delaying expected content increase and localization benefits.
NEW RISK
Technology transition to EVs and hybrids
Gradual shift from diesel to EVs/hybrids could reduce demand for legacy products; management acknowledges diesel share will decline over time.
NEW RISK
High inventory in passenger vehicle segment
Pipeline inventory buildup in cars due to low footfall from heat waves and elections poses a risk to near-term demand.
NEW RISK
Margin pressure from technology mix shift
Shift from conventional to Common Rail systems increases material costs; localization is critical but timing is uncertain.
RISK GONE
Erratic monsoon and rural sentiment impact on tractor segment
Tractor sales declined 15% in Q4 FY24 due to erratic monsoon and low reservoir levels, which could continue to affect rural demand.
RISK GONE
Three-wheeler encroachment on sub-one-tonne LCV segment
Management noted the risk of three-wheelers encroaching on the sub-one-tonne LCV segment, which could pressure LCV growth.
RISK GONE
Portfolio realignment uncertainty and perception risk
Analyst raised concerns about related-party transactions and portfolio realignment creating negative perception; management acknowledged ongoing changes without clear timeline.
RISK GONE
Gross margins at 15-20 year low despite soft commodity prices
Analyst observed gross margins at multi-decade lows despite soft commodity prices, questioning whether localization benefits are materializing.
🤫 Topics management stopped discussing
Mentioned in Q2 FY24, Q3 FY24, Q4 FY24
Management expects moderate growth for FY25, with Q1 impacted by elections and liquidity crunch, but recovery from Q2 onwards.
Mentioned in Q1 FY24, Q2 FY24
Management guided CapEx of INR 3.5 billion for FY24, mainly for localization in Common Rail and exhaust gas treatment.
Fast read
Guidance and risk preview
Management expects FY2025 performance to be similar to FY2024, with moderate growth despite election and high base effects.
TREM V implementation for tractors has been postponed, potentially delaying expected content increase and localization benefits.
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