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,...
bullish
medium
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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.
65%Questions answered2Evaded / deflected10Questions audited
Partial answer
Medium priority
Why did traded goods share drop QoQ despite stable revenue?
Asked by Pramod Kumar
Acknowledged change but did not explain the specific QoQ decline, only general localization trend.
no specific reason for QoQ dropdeferred to future quarters
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Question
Good. Has fallen meaningfully on a quarter-on-quarter basis on a stable top line. So if you can just help us understand this, and also, does it have anything to do with the sequential drop in consumer business?
Karin Gilges, Chief Financial Officer, Bosch Limited
Regarding your first question regarding the traded goods, of course, we have a change all the time from quarter to quarter. In general, we are, in principle, going ahead with the localization. Nevertheless, for the next quarters, we do not expect a big change due to the fact that the effects out of our hard localization work will need some time.
Declined
High priority
What is the exposure to CV and tractor segments?
Asked by Pramod Kumar
Management explicitly refused to provide the requested segment breakdown.
refused to disclose
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Question
If you can just broadly help us understand how much would be our exposure to the automotive segments of commercial vehicle and tractors broadly?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
Pramod, we do not split our business results in that category you asked for. I do not go into that right now.
Partial answer
High priority
Progress in electric two-wheeler and car segments?
Asked by Pramod Kumar
Provided qualitative update but no numbers or concrete milestones.
no quantitative progressno specific wins
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Question
On electrification, if you can just help us understand the progress you are making with electric two-wheeler mobility and electric cars?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
We have a good presence in this two-wheeler space right now. We supply to OEMs our hub motors. ... In terms of the passenger car segments, we are in early discussion with OEMs on our passenger car electrification portfolio.
Answered
High priority
Is Bosch willing to accept lower EV margins?
Asked by Pramod Kumar
Directly acknowledged lower margins and explained selective approach.
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Question
Is Bosch not willing to look at the EV landscape differently in terms of the fact that the margins are expected to be lower there?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
We certainly know in electrification, globally, the margins are going to be lower. But we will not do this to completely spoil everything with regard to our overall margin profile.
Answered
Medium priority
What was the reduction in other expenses from Project House sale?
Asked by Jinesh Gandhi
Provided a specific number for the reduction.
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Question
Would you be able to indicate what level of other expenses have reduced because of our sale of Project House Mobility Solutions?
Karin Gilges, Chief Financial Officer, Bosch Limited
It is roughly about INR 470 million in the other expenses.
Partial answer
Low priority
Was there a forex gain or loss in other expenses this quarter?
Asked by Jinesh Gandhi
Mentioned exchange gain but did not quantify it for the current quarter.
no specific gain/loss figure
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Question
And was there any Forex gain in this quarter in other expenses, or there was loss only?
Karin Gilges, Chief Financial Officer, Bosch Limited
If we go from the quarter-over-quarter between 2022 and 2023, we see a decrease coming partially out of the spendings, as just mentioned. And then we had exchange gain, one-time expenses, and the warranty expenses.
Answered
Medium priority
Any update on TREM V norms timeline for tractors?
Asked by Jinesh Gandhi
Clearly stated no update, current expectation of 2026, and readiness.
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Question
I believe there is an update on the timelines for TREM V norms for tractors. So any clarity from government on that side?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
There is no further update. We believe that the norms are due for 2026 right now. ... In terms of our preparedness to deal with TREM V, we are now fully ready.
Evasive
Medium priority
How does TREM V delay impact capital allocation?
Asked by Pramod Amte
Acknowledged impact but did not quantify or explain effect on capital allocation.
no specific impact on capital allocation
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Question
How does such things impact your capital allocation policies and also in the fact that will that be a drag for you in the time it actually goes live?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
It does impact to some extent. But yeah, since we knew the TREM V delay pretty early on, ... it does not really have a major impact for us right now.
Answered
Low priority
What was the annualized spend on Project House Mobility?
Asked by Pramod Amte
Provided the annualized figure.
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Question
Would you be able to similarly give us last year what was the spend on an annualized basis?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
It's about net INR 1,400 million.
Answered
High priority
Outlook for M&HCV segment and capacity planning?
Asked by Pramod Amte
Provided specific growth outlook and unit numbers.
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Question
What's the outlook you are getting from the customers for the M&HCV side, which might be a lumpy for you also? And is it still on a growth, or are you preparing for, how are you preparing your capacities?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
The HCV and the medium commercial vehicle segment has bounced back from its lows. We expect that it will continue to moderately grow in the coming year. ... We expect it to remain flat or maybe have a very small between 3%-5% growth.
Partial answer
Medium priority
What drove the 10% decline in other expenses ex-Project House?
Asked by Viraj Kacheria
Listed factors but did not quantify their contribution to the decline.
no quantification of each factor
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Question
If I adjust for the impact of the sale of Project House Mobility, still the other expenses have kind of declined by 10% while the revenue growth has been almost 14%-15%. Which of the larger factors has driven this?
Karin Gilges, Chief Financial Officer, Bosch Limited
Besides the fact, of course, that we are implementing cost measures to get a better fixed cost absorptions, we have three main topics. ... the customer project. ... The second part is the warranty expenses. ... The third part is ... the revaluation of the payables.
Answered
High priority
Is Bosch India also slowing new-age business spends like parent?
Asked by Viraj Kacheria
Clearly differentiated India from global and stated no similar slowdown.
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Question
When it comes to the listed entity, are we also looking at similar measures in terms of lowering the spend or anything on that sense?
Guruprasad Mudlapur, Managing Director and Chief Technology Officer, Bosch Limited
I would not agree on that because what parent announced is uniquely global or uniquely advanced markets ... In that context, we do not see anything that the parent announced globally as withholding factors for us in India.