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View Risks →Bosch Limited — Q2 FY24
Bosch Limited reported Q2 FY24 revenue of INR 4,130 crore, up 12.8% YoY, driven by 11.7% growth in Mobility Solutions and 9.9% in Beyond Mobility.
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Bosch Limited reported Q2 FY24 revenue of INR 4,130 crore, up 12.8% YoY, driven by 11.7% growth in Mobility Solutions and 9.9% in Beyond Mobility. PAT surged to INR 999 crore (vs INR 372 crore YoY), boosted by a one-time gain of INR 605 crore from the sale of Project House Mobility Solutions. Gross margin pressure persisted due to higher traded goods share (material cost at 66.8% of revenue vs 64.9% YoY) and adverse forex. Management emphasized localization as the key remedy, targeting 68% localization in Common Rail and localizing exhaust gas treatment components. CapEx guidance for FY24 is INR 350 crore. Risks include weak export markets (Europe, US) and potential demand moderation from election-year dynamics and erratic monsoons.
बॉश लिमिटेड ने दूसरी तिमाही में 4,130 करोड़ रुपये का कारोबार किया, जो पिछले साल से 12.8% ज्यादा है। इसकी वजह मोबिलिटी सॉल्यूशंस में 11.7% और बियॉन्ड मोबिलिटी में 9.9% की बढ़ोतरी रही। कंपनी का मुनाफा 999 करोड़ रुपये हो गया, जो पिछले साल 372 करोड़ रुपये था। इसमें 605 करोड़ रुपये का एकमुश्त फायदा शामिल है, जो एक प्रोजेक्ट बेचने से मिला। लागत बढ़ने से मुनाफे पर दबाव है, क्योंकि सामग्री की लागत 66.8% हो गई है। कंपनी अब ज्यादा देसी पुर्जों का इस्तेमाल करके लागत घटाने पर जोर दे रही है। इस साल 350 करोड़ रुपये निवेश का लक्ष्य है। कमजोर निर्यात और चुनावी साल में मांग घटने का खतरा है।
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Read Transcript →Quarter Snapshot
Mobility Solutions Sales Growth
11.7%
+11.7pp YoY
Mobility sector sales grew 11.7% YoY, driven by HCV and passenger car segments and higher content per vehicle.
Two-Wheeler Business Sales Growth (QoQ)
18.6%
+18.6pp QoQ
Two-wheeler sales rose 18.6% QoQ due to improved semiconductor supplies and higher fuel injector sales.
Common Rail Localization
68%
+18pp YoY
Common Rail localization reached 68% this year, up from below 50% previously, with plans to increase further.
CapEx Guidance FY24
INR 350 crore
N/A
CapEx for FY24 is estimated at INR 3.5 billion, primarily for localization in Common Rail and exhaust gas treatment.
What Changed vs Last Quarter
NEW
Mid-term localization to improve margins
Localization of Common Rail and exhaust gas treatment components over the next 4-5 years is expected to improve gross margins.
NEW
Moderate growth expected in FY25 due to election year
Management anticipates moderate growth in FY25 due to election year dynamics, high base, and erratic rainfall.
UPDATED
CapEx of INR 350 crore for FY24
Management guided CapEx of INR 3.5 billion for FY24, mainly for localization in Common Rail and exhaust gas treatment.
DROPPED
Localization of exhaust-gas treatment and injectors over 2-4 years
Management plans to localize production of exhaust-gas treatment components and injectors for commercial vehicles to improve margins.
DROPPED
Employee cost trend at 8% of revenue
Employee cost as a percentage of revenue is expected to be around 8% for the financial year, normalizing after provision reversals.
NEW RISK
Weak export markets
Exports are facing headwinds from weak European and US markets, with negative trends in passenger car injector exports.
NEW RISK
Gross margin pressure from traded goods mix
Higher share of traded goods and adverse forex are compressing gross margins; recovery depends on localization which is mid-term.
NEW RISK
Demand moderation from election and monsoon
Election year dynamics and erratic monsoons could dampen rural sentiment and automotive demand in FY25.
NEW RISK
Cost recovery challenges with OEMs
Management acknowledged difficulty in passing on cost increases to OEMs due to lengthy justification processes, though contracts allow it.
RISK GONE
Sustained high traded goods mix pressuring margins
Traded goods as a percentage of revenue increased to 54.4% from 51.3% last year, and management expects this to persist until localization ramps up over 2-4 years.
RISK GONE
Sluggish two-wheeler export market and entry-level demand
Two-wheeler exports remain sluggish and entry-level domestic demand is weak, which could impact Bosch's two-wheeler business growth.
RISK GONE
Uncertainty in EV order wins and eAxle portfolio alignment
Bosch is still aligning its global eAxle portfolio to local requirements, and management declined to provide market share or revenue projections, indicating early stage and competitive risk.
Fast read
Guidance and risk preview
Management guided CapEx of INR 3.5 billion for FY24, mainly for localization in Common Rail and exhaust gas treatment.
Exports are facing headwinds from weak European and US markets, with negative trends in passenger car injector exports.
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