Leading automotive and industrial products firm Bosch Ltd reported net profit of Rs.336 crore for the first January-March first quarter of 2012, registering a 23 percent increase year-on-year (YoY) over like period of 2011 at Rs.274 crore.
In a regulatory filing Monday, the Indian subsidiary of the $67-billion German major said net sales and income from operations during Q1 increased 10 percent YoY to Rs.2,312 crore from Rs.2,097 crore in the same period year ago despite a sluggish economy, slowdown in the automotive industry and challenges in the export market, mainly in Europe.
“Business conditions were challenging, particularly for the auto industry due to varying levels of performance in different segments. Prediction of normal monsoon combined with expectation of falling inflation and declining interest rates give us hope of a satisfactory performance in 2012,” Bosch managing director V.K. Viswanathan said in a statement here later.
Diesel systems business witnessed 3.8 percent YoY growth due to decline in the tractor market and de-growth in export market.
“Starter and generator business, however, posted an impressive growth. Introduction of new baseline alternators in the second half of 2011 for inland and export customers enabled the division to post higher growth,” Viswanathan noted.
Automotive after market and power tools division had a healthy double digit growth of 13-15 percent YoY. Packaging division grew 61 percent YoY due to higher export projects while security technology division posted 20 percent YoY growth.
Exports sales were marginally up 3.3 percent YoY due to weak demand in the European region.
“In spite of negative impact of sharp rupee depreciation, profit before tax grew 19 percent YoY primarily due to better cost management and higher treasury income,” Viswanathan added.