Bosch Limited — Q4 FY24
Bosch Limited reported Q4 FY24 revenue of INR 4,423 crore, up 4.2% YoY, with EBITDA margin improving 30 bps to 13.2%.
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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.
58%Questions answered2Evaded / deflected12Questions audited
Answered
High priority
Role and products of Bosch in hybrid technology in India.
Asked by Gokul Maheshwari
Management provided specific product range and confirmed engagement with OEMs.
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Question
Can you please elaborate what role and what products does Bosch play in this technology globally and in India? And are you working with any of the existing OEMs which are offering this product in India, and what are these products?
Annamalai Jayaraj, Managing Director, Bosch Limited
We have a full range of products for the hybrid market. So we offer the hybrid energy batteries. We have systems which are for different classes of hybrids. We have from P1 to P4, all classes of hybrids catered to within our product technology. And this, we are offering also to the Indian OEMs.
Partial answer
High priority
Difficulty justifying localization investments given low volumes and gross margin lows.
Asked by Gokul Maheshwari
Answered localization commitment but did not address gross margin new normal question directly.
no margin guidancedeferred to CFO
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Question
Are you finding it difficult to justify investment in localizations, given the volumes could be still low, and there may not be an economic sense to invest? ...should we consider these gross margins as a new normal for the company?
Annamalai Jayaraj, Managing Director, Bosch Limited
We've always believed in localization for the Indian market, and with or without a subsidy regime... we've done substantial amount of localization for the Indian OEMs. In some product classes, we are nearly 90%-95% localized.
Evasive
High priority
Should gross margins trend up over 2-3 years due to localization?
Asked by Gokul Maheshwari
Refused to give any directional guidance on margins despite direct question.
no guidanceno commitment
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Question
Should we be expecting the benefits of that to convert into slightly higher gross margins over the two to three-year period? That they should be trending up?
Karin Gilges, CFO, Bosch Limited
Without giving you a guidance, let's say, of course, whenever you have a localization, we are not doing localization because of localization, but in the end, of course, we would also like to see the result in our figures.
Partial answer
Medium priority
Feedback on related party transaction creating negative perception.
Asked by Gokul Maheshwari
Acknowledged feedback but did not commit to changing approach or provide details.
no specifics on future transactions
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Question
Whenever you are making future capital allocation decisions, you may just want to be investing in businesses which are core to your strategy... this is sort of ending up taken up negatively by the capital markets.
Annamalai Jayaraj, Managing Director, Bosch Limited
We are looking at an overall portfolio restructuring internally. And this is done, not just in India, but also at Bosch globally... Keep tuned, and we will let you know how this develops.
Partial answer
Medium priority
Ramp-up status of new CV localization facility.
Asked by Jinesh Gandhi
Described progress qualitatively but did not give quantitative ramp-up level or full ramp date.
no specific ramp-up percentage or timeline
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Question
Would you update us on the new facility which started about 2-3 quarters back, to what level it has ramped up and by when it is expected to be fully ramped up?
Karin Gilges, CFO, Bosch Limited
We had a very good ramp-up of the line of the assembly and testing. Meanwhile, we had last year... a ramp-up of the component business. We are going ahead with the localization of third-party suppliers also.
Answered
High priority
SOP timing for EGT localization and whether at Bosch Limited.
Asked by Jinesh Gandhi
Provided specific month and year for SOP and confirmed it is at Bosch Limited.
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Question
When is the SOP expected for EGT localization? And this would be at Bosch Limited level, or that's at the vendor level?
Karin Gilges, CFO, Bosch Limited
We expect the SOP, the start of production, in April 2025. Because you have to understand that these are quite complex lines, but it's on the way. It's decided, it's ordered, SOP, April 2025.
Answered
High priority
TREM V implementation timeline and capacity needs.
Asked by Jinesh Gandhi
Gave specific timeline and confirmed no new capacity needed, with good localization.
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Question
Are we getting any clarity on by when it will be implemented? And in that context, would we need to invest in new capacities for localization?
Annamalai Jayaraj, Managing Director, Bosch Limited
The current indication is April 2026 for TREM V introduction. We hope that standard does not get pushed. ...capacity is available. ...we will start with a fairly good level of localization here.
Partial answer
High priority
Why EBITDA margin improvement small despite localization and divestment benefits.
Asked by Jinesh Gandhi
Explained depreciation impact but did not reconcile with expected benefits from divestment.
did not quantify margin improvementattributed to depreciation
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Question
If I look at our EBITDA margins, improvement on YY basis has been quite small... are there any one-offs or am I missing anything over here?
Karin Gilges, CFO, Bosch Limited
We see an improvement, of course, coming from the EBIT improvement... with a little bit more depreciations, mainly coming out of the Adugodi campus here. You see an increase in the operating profit by 4.6%.
Partial answer
Medium priority
Export mix and new initiatives for exports.
Asked by Lakshminarayanan
Provided export percentage but did not answer about new initiatives.
no new initiatives mentioned
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Question
What has been the mix of exports for this year? ...any new initiatives that has come up recently?
Annamalai Jayaraj, Managing Director, Bosch Limited
Exports, currently for FY 2022, 2023, 2024, stood at 8.1%, overall of our total net sales. And we are working on increasing this over the coming years.
Declined
High priority
Will portfolio realignment involve businesses leaving or entering listed entity?
Asked by Viraj
Declined to answer any specifics about direction of portfolio changes.
refused to speculateno timeline
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Question
Will the realignment largely be of some of the businesses going out of the listed entity, or it also would include some of the other adjacent products or businesses of other group companies in India coming into listed entity?
Annamalai Jayaraj, Managing Director, Bosch Limited
I would not speculate at this point of time on anything. These are portfolio discussions that are currently ongoing, and we will keep you updated as things develop.
Partial answer
High priority
Guidance for FY2025 on growth, CapEx, and R&D.
Asked by Viraj
Provided CapEx range but gave only qualitative growth expectation and no R&D figure.
no specific growth guidanceno R&D number
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Question
For 2025, what would that be for us? ...in terms of the R&D and expectation for growth this year?
Annamalai Jayaraj, Managing Director, Bosch Limited
On average, we've had a CapEx of between INR 400-600 crore... this is something that will continue. ...the growth of FY 2023-2024 is something that we are looking forward to also in the upcoming year.
Answered
Medium priority
Why other expenses dropped YoY and if Project House losses are reflected.
Asked by Viraj
Explained lower spending from hived-off business and cost measures, gave percentages.
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Question
What explains the drop in other expenses on a year-on-year basis?
Karin Gilges, CFO, Bosch Limited
We have a lower spending, related to the new business, which we hived off. On the other side, we also put in place cost measures, which are sustainable. ...we were in March 2024, on a 14.7%, comparable in 2023, 16.8%.