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.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
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.
58%Questions answered3Evaded / deflected12Questions audited
Evasive
High priority
Update on EV business in India, especially two-wheelers, market share vs ICE.
Asked by Pramod Kumar
Acknowledged recovery but gave no numbers on market share or comparison with ICE.
no specifics on market sharedeferred specifics to future
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Question
Data on the electric vehicle business in India, especially on the two-wheeler side... how we are doing in terms of the category market share on electrification, and how does it compare versus our ICE portfolio?
Sandeep Nelamangala, Joint Managing Director, Bosch Limited
Well, on the electrification front... two-wheeler demand has kind of recovered. On the passenger cars, we see a consistent demand... We will continue to focus on our portfolio engagement... before we can get into more specifics on portfolio enlargement.
Partial answer
High priority
Path to recoup prior gross margins given benign commodity costs and localization.
Asked by Gokul Maheshwari
Explained localization efforts but did not quantify margin improvement or timeline.
no quantified margin targetno timeline for recovery
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Question
Where do you see the margins coming back in terms of your localization program... because it's nearly 10 percentage points lower than your longer term averages.
Karin Gilges, CFO, Bosch Limited
Yes, the gross margin... we see currently an increase in the share of the traded goods... We have localized the injector... we will end up at about 68% localization of the components... all these activities will support our gross margin in the future.
Partial answer
Medium priority
CapEx budget for FY 2024 and 2025.
Asked by Gokul Maheshwari
Provided CapEx for 2024 but not for 2025, citing ongoing planning.
no number for 2025
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Question
Would you be able to quantify the CapEx budget for FY 2024 and 2025?
Karin Gilges, CFO, Bosch Limited
For the current, for the next year, we are estimating a CapEx of INR 3.5 billion. For the year 2025, we are currently in the middle of the mid-term planning.
Answered
Medium priority
Will EGT localization be done by Bosch or vendors, reducing traded goods?
Asked by Jinesh
Confirmed both points directly and succinctly.
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Question
So you talked about localizing EGT components as well. So that will be done through Bosch entity, or it will be done at the vendors level? And what I'm trying to understand is would that lead to lower share of traded goods?
Guruprasad Mudlapur, Managing Director and CTO, Bosch Limited
Yes. Yes. The answer to both is yes.
Answered
Medium priority
Can Common Rail localization reach 100%?
Asked by Jinesh
Clearly stated 100% localization is not achievable.
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Question
We've already reached 68% localization for Common Rail components. We are looking to take it up to 100%, or certain components will still be imported?
Karin Gilges, CFO, Bosch Limited
100%, we will not reach. We even have in the conventional... we are at 95%. So the 100% we will not reach, but we will try to do everything to localize as much as possible.
Answered
High priority
Why did two-wheeler business grow 19% when industry production declined?
Asked by Jinesh
Explained the disconnect by segment mix, directly addressing the question.
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Question
In this quarter, we saw almost 19% growth for our two-wheeler segment business. If I look at the underlying industry, production grew sub 2%... What led to such a strong growth for Bosch?
Sandeep Nelamangala, Joint Managing Director, Bosch Limited
There is a higher distress in the commuter segment, where our play is rather low, but in the premium part of the two-wheelers, the market has done better and so have we.
Partial answer
High priority
Update on PLI scheme, approvals, and benefit sharing with customers.
Asked by Pramod Kumar
Confirmed qualification but gave no details on components or final benefit sharing policy.
no specifics on componentsbenefit sharing not finalized
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Question
Can you please provide us an update on the PLI scheme? If there's any progress... what kind of components are we getting the approval from the government... will you be also sharing some of these benefits with your customers?
Guruprasad Mudlapur, Managing Director and CTO, Bosch Limited
We've qualified for PLI at Bosch Limited. We are planning to bring in lots of local manufacturing... In general, we intend to keep the benefits with us, and also share where required with the customers. But this is not totally finalized as of now.
Answered
Medium priority
Why are other expenses lower due to ECU and injector localization?
Asked by Pramod Amte
Listed multiple specific reasons for lower other expenses.
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Question
You have called out that in the slide, saying that your other expenses are lower because of some localization program on the ECU and injectors.
Karin Gilges, CFO, Bosch Limited
We have different effects in the other expenses. One effect is we have a sale of business of the mobility platform... reduction in the one-time cost of technical access fees... several cost-saving measures... reduction due to better fixed cost absorption.
Answered
Medium priority
Impact of sale of business on sales and EBITDA.
Asked by Pramod Amte
Clearly stated no material revenue impact and explained bottom-line treatment.
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Question
What implication it will have on your sales and EBITDA because of this sale of business?
Karin Gilges, CFO, Bosch Limited
Do we now see a huge effect in the top line, means in the revenues? No, we're selling the business. In the bottom line, we see it in this quarter under the one-time expense or exceptional items.
Evasive
High priority
Outlook for commercial vehicle industry given peak concerns.
Asked by Pramod Kumar
Did not confirm or deny peak, gave generic recovery commentary.
no clear view on peakvague on outlook
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Question
Some of the larger peers... have started to call out a peak for the industry now... what are your thoughts on the commercial vehicle space, as we go forward from here?
Sandeep Nelamangala, Joint Managing Director, Bosch Limited
I think on the commercial vehicle, there was this peak which we saw the industry getting to in 2018... now we see a turnaround, albeit in a very low base. It is a slow recovery... we'll keep a very close watch on it.
Partial answer
High priority
Why contribution margin not improving despite benign raw materials and strong OEM margins?
Asked by Viraj
Explained cost pressures but did not quantify the gap or provide a recovery timeline.
no quantification of unrecovered costsno margin target
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Question
I'm still not able to understand the mix part, or is it that... the terms of the trade are no longer that strong... post BSVI?
Sandeep Nelamangala, Joint Managing Director, Bosch Limited
I don't think that there is... a difference between a pre-BSVI or a post-BSVI. So we do have coverage for raw material recovery... But what we have seen the last 12-18 months is a rather disproportionate increases in the cost driven by logistics costs, wages costs, energy costs, semiconductor-related costs.
Evasive
High priority
Why margins haven't recovered despite cost initiatives; what is normalized margin?
Asked by Ravi Purohit
Did not address the core question about structural margin decline or provide a target.
no normalized margin guidancedeflected to localization
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Question
We have taken various cost initiatives, and yet... our margins would probably be like low single digits today... whether is there a problem with our strength with our OEMs... what is the normalized margin that investors should hope to?
Karin Gilges, CFO, Bosch Limited
These initiatives on the personnel cost side were the absolute right ones... we are in the current quarter in the personnel costs at 8.1% of the revenues... we see one thing, and these are the material costs... we have increased our portion of imported goods... which we are on the mid-term now coming into the next localization wave.