Bosch India Aims For Double-Digit Growth, Healthier EBITDA In FY24
Bosch Limited is looking to register double-digit growth in the FY 2024, said its newly appointed MD Guruprasad Mudlapur on Tuesday. The outlook was provided on the basis of trends in the Indian automotive industry, with a notable shift towards premium vehicles and cleaner fuel options, including electrification.
Speaking at a press conference, Mudlapur said, "We expect to have a double-digit growth of about 15 per cent in the fiscal year 2023, and we are driving towards an even healthier EBITDA margin."
Bosch on Monday reported robust financial performance in the first quarter of FY 2023-24, with a notable 17.3 per cent increase in total revenue from operations compared to the same quarter of the previous year. The company’s Profit After Tax (PAT) stood at Rs 409 crore (46 million euros), equivalent to 9.8 per cent of revenue from operations.
The noteworthy growth has been primarily attributed to increased sales of Exhaust Gas Temperature (EGT) components in both the passenger car and commercial vehicle segments, which have outperformed the market. Rising income levels and a greater focus on value-driven factors have also contributed to the surging demand for scooters, premium motorcycles, and SUVs, which helped Bosch’s performance in the quarter.
In terms of business segments, the Powertrain Solutions division of Bosch Limited experienced a noteworthy growth of 12.5 per cent over the same quarter of the previous financial year, surpassing the overall automotive market growth. This resulted in a commendable 13.6 per cent increase in the product sales of the automotive segment.
The mobility solutions segment remains Bosch's largest market, contributing 87 per cent of the company's overall turnover. The focus on electrification and localisation of products for the Indian market is expected to further strengthen Bosch's position in this segment. The company is keen on expanding its Aftermarket business and aims to have 1000 Bosch car service centres by 2025.
During the press conference, Mudlapur revealed the company's focus on investing in research and development (R&D), aiming to invest Rs 480 crore in technological advancements in FY24, up from Rs 420 crore in FY23. He said that about 6 to 8 per cent of Bosch Limited’s turnover is dedicated to R&D in India.
Commenting on India, the Bosch Limited MD highlighted the strong performance of the economy and expressed hope for sustained growth, projecting between six to six-and-a-half per cent growth in FY24.
