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Updated February 13th, 2024 at 16:08 IST

Bosch India profit rises 62.5% in Q3 driven by strong auto parts demand

The surge in demand for auto parts was propelled by a 21 per cent year-on-year increase in vehicle production during the quarter.

Business Desk
Bosch job cuts
Bosch | Image:Unsplash
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Bosch, the Indian arm of German automotive supplier Robert Bosch GmbH, announced 62.5 per cent increase in third-quarter profit on Tuesday, attributing the surge to robust demand for its automotive parts.

The company's net profit soared to Rs 518 crore in the three months ending December 31.

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Specialising in manufacturing auto parts such as braking systems and batteries, Bosch also operates a powertrain business providing exhaust gas treatment components. Its automotive products segment, which encompasses both auto components and train businesses, accounts for over 86 per cent of total revenue.

The surge in demand for auto parts was propelled by a 21 per cent year-on-year increase in vehicle production during the quarter, according to data from the Society of Indian Automobile Manufacturers.

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Consequently, revenue from the automotive products segment surged by almost 13 per cent, driving total revenue up by nearly 15 per cent to Rs 4,205 crore.

Despite a concurrent 11 per cent rise in total expenses, including a 16 per cent spike in raw material costs due to soaring global prices of metals like steel, Bosch managed to maintain strong profitability. Meanwhile, the company recorded a one-time item of Rs 58.8 crore in the quarter due to a reversed provision relating to regulatory changes for certain emission rules.

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The company announced an interim dividend of Rs 205 per share.

Bosch shares ended 5.2 per cent higher at Rs 26,600 ahead of earnings announcement.

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(With Reuters inputs)
 

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Published February 13th, 2024 at 16:08 IST

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