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View Risks →Bosch Limited — Q3 FY24
Bosch Limited reported a strong Q3 FY24 with revenue from operations at INR 42,052 million, up 14.9% YoY, driven by 18.5% growth in product sales across powertrain, aftermarket, and two-wheeler segments.
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Bosch Limited reported a strong Q3 FY24 with revenue from operations at INR 42,052 million, up 14.9% YoY, driven by 18.5% growth in product sales across powertrain, aftermarket, and two-wheeler segments. EBITDA surged 56.1% YoY to INR 4,611 million, with margins expanding 296 bps to 11.0%, aided by lower other expenses and a one-time reversal of restructuring provisions. PAT grew 62.5% YoY to INR 5,181 million. Management highlighted healthy demand in two-wheelers (up 19% YoY) and commercial vehicles, but flagged election-year uncertainties and global headwinds. Guidance suggests moderate growth ahead, with cautious optimism on electrification and hydrogen ICE pilots. Key risk: potential slowdown in tractor and passenger car segments due to erratic rainfall and high base effects.
बॉश लिमिटेड ने वित्त वर्ष 2024 की तीसरी तिमाही में मजबूत प्रदर्शन किया। कंपनी की कुल कमाई 42,052 लाख रुपये रही, जो पिछले साल की तुलना में 14.9% अधिक है। इसका मुख्य कारण पावरट्रेन, आफ्टरमार्केट और दोपहिया वाहनों में उत्पादों की बिक्री में 18.5% की बढ़ोतरी थी। कंपनी का मुनाफा (EBITDA) 56.1% बढ़कर 4,611 लाख रुपये हो गया। खर्च कम होने और एक बार के रीस्ट्रक्चरिंग प्रोविजन को वापस लेने से मुनाफे का मार्जिन 11% तक पहुंच गया। शुद्ध मुनाफा (PAT) 62.5% बढ़कर 5,181 लाख रुपये रहा। प्रबंधन ने दोपहिया और कमर्शियल वाहनों की मांग अच्छी बताई, लेकिन चुनावी साल और वैश्विक चुनौतियों से सावधानी बरतने को कहा। आगे मध्यम वृद्धि की उम्मीद है। ट्रैक्टर और कारों की बिक्री में कमी आ सकती है क्योंकि बारिश अनियमित रही और पिछले साल का आधार ऊंचा है।
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Two-wheeler volume growth
19%
+19% YoY
Two-wheeler segment grew 19% YoY driven by festive and wedding season demand on a low base.
Mobility business sales growth
16.8%
+16.8% YoY
Mobility solutions sales grew 16.8% YoY, led by powertrain solutions up 20.4%.
Beyond-mobility sales growth
32.5%
+32.5% YoY
Beyond-mobility sector grew 32.5% YoY, with power tools up 30.5% and building tech up 18.1%.
Tractor volume decline
-13%
-13% YoY
Tractor volumes declined 13% YoY due to uneven rainfall impacting farm cash flows and high base.
What Changed vs Last Quarter
NEW
Next quarter flat to small growth
Management indicated Q4 FY24 may be flat or see very small growth.
NEW
TREM V norms expected by 2026
Management expects TREM V norms for tractors to be implemented in 2026, with Bosch fully ready.
NEW
PLI disbursements expected in 2024
Management expects PLI benefits to start flowing in 2024 after audits on domestic value-add.
UPDATED
Moderate growth expected in 2024
Management expects slower market growth in 2024 due to high base, election uncertainties, and erratic rainfall.
DROPPED
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
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 RISK
Election-year uncertainty
National elections in 2024 may cause demand slowdown, as seen historically.
NEW RISK
Global headwinds and Red Sea logistics
Global economic slowdown and Red Sea disruptions could increase logistics costs and impact supply chains.
NEW RISK
Tractor demand weakness
Tractor volumes declined 13% YoY due to erratic rainfall; continued weakness could impact overall performance.
NEW RISK
Electrification margin pressure
Management acknowledged global electrification margins are low; Indian EV market may face similar pressure as penetration grows.
RISK GONE
Weak export markets
Exports are facing headwinds from weak European and US markets, with negative trends in passenger car injector exports.
RISK GONE
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.
RISK GONE
Demand moderation from election and monsoon
Election year dynamics and erratic monsoons could dampen rural sentiment and automotive demand in FY25.
RISK GONE
Cost recovery challenges with OEMs
Management acknowledged difficulty in passing on cost increases to OEMs due to lengthy justification processes, though contracts allow it.
🤫 Topics management stopped discussing
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 slower market growth in 2024 due to high base, election uncertainties, and erratic rainfall.
National elections in 2024 may cause demand slowdown, as seen historically.
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