Business sale profit boosts Bosch`s Q2 profit to Rs.998 crore, to divest stakes in Hinduja Renewables
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Automotive and consumer products maker Bosch Ltd on Thursday said it closed the second quarter of FY24 with a net profit of Rs.998.9 crore.
The company also said the Board has approved the sale of 34,64,316 equity shares representing 16.90 per cent of paid-up share capital of Hinduja Renewables One Private Limited.
According to Bosch, the sale price will be at the face value of the shares, that is, Rs.10 and the reason for the sale is that the investment has become financially not viable pursuant to change in the regulatory framework in Maharashtra.
For the quarter ended 30.9.2023, Bosch had logged an operational revenue of Rs.4,130.1 crore (Q2FY23 Rs.3,661.6 crore) and a net profit of Rs.998.9 crore (Rs.372.4 crore).
Included in the net profit is the Rs.785 crore profit on the sale of the company’s ‘Project House Mobility Solutions’ Business for a consideration of Rs780.9 crore. The transfer was completed in July 2023 and hence accounted for in the second quarter.
According to Bosch, the Powertrain Solutions business, which constitutes more than 63 per cent of the total net sales, showed a growth of 12.3 per cent over the same quarter of the previous financial year.
This is higher than the overall automotive market growth due to increase in content per vehicle, mainly Exhaust Gas Treatment (EGT) components.
As a result there was an increase of 11.7 per cent in the product sales of the automotive segment.
The two-wheeler business has experienced a higher growth of 18.6 per cent compared to the same quarter last year due to the easing of semiconductor supplies as compared to the same quarter of the previous year.
The Beyond Mobility business recorded a 9.9 per cent increase in net sales over the same quarter of the previous financial year, driven by continued growth in the consumer products segment.
“Over the next decade, the mobility sector in India will transform fundamentally. India is already the third-largest auto market worldwide and we are optimistic about a promising future where we move towards electrification, cleaner fuel options, green hydrogen, and safer vehicles.
“Demonstrating our agility in embracing change, Bosch is committed to take center stage and emerge as the ultimate system solution provider for new-age technologies in the mobility space,” said Guruprasad Mudlapur, Managing Director, Bosch Limited and President, Bosch Group, India in a statement.
