Bosch Registers 12.6% Profit Before Tax In FY 2022-23

Bosch, a supplier of technology and services, ended its financial year 2022-23 with total revenue from operations of Rs. 14,929 crore (1,667 million euros), thus registering an increase of 26.7 per cent compared to the previous fiscal year. Profit Before Tax (PBT) increased by 25.5 per cent to Rs. 1,882 crore (210 million euros) in FY 2022-23, amounting to 12.6 per cent of total revenue from operations.

“2022 was a historic year as we celebrated 100 years of Bosch in India and at the same time it was a year replete with challenges in the market. Despite all odds, we concluded the year with strong performance and positive revenue growth. This was primarily fueled by the solid recovery in the auto market post-pandemic,” said Soumitra Bhattacharya, Managing Director of Bosch and President of Bosch Group in India.

The Profit After Tax (PAT) for FY 2022-23 stood at Rs. 1,425 crore (159 million euros). The total capital investments for the year, including capital work-in-progress, amounted to Rs. 751 crores, with a significant portion allocated towards the development of Spark. NXT campus in Adugodi, Bengaluru. 

“Internal Combustion Engine (ICE) will remain the dominant technology in the passenger car segment, even as the transition to electrification is already underway. At Bosch, we will continue to provide products and solutions as per evolving market requirements,” added Bhattacharya

Results in Quarter 4 of FY 2022-23

In Q4 of FY 2022-23, which ended on March 31, 2023, Bosch posted a total revenue from operations of Rs. 4,063 crore (454 million euros), an increase of 22.7 per cent compared to the corresponding quarter in 2022. PBT for the current quarter stood at Rs. 533 crore (60 million euros), a 23.6 per cent increase over the same period of the previous year.

Additionally, the total product revenue of Bosch’s Mobility Solutions business sector and Beyond Mobility Solutions business sector increased by 23.7 per cent and 7.8 per cent, respectively. The growth in the latter sector can be attributed to the Energy and Building Technology business. 

Business Development in FY 2022-23

Bosch's Mobility Solutions business sector reported a 30 per cent increase in product sales during the fiscal year 2022-23, largely driven by a 22 per cent growth in the overall automotive sector. This growth was further supported by an increase in the share of content per vehicle, particularly in exhaust gas treatment. Domestic sales for Bosch also rose by 27.5 per cent.

Within the Mobility Solutions business sector, the Powertrain Solutions division in India saw a 35.9 per cent increase, while the sales of the Two-wheeler business Sales grew by 15 per cent, particularly in exhaust sensors & fuel injectors segments due to improved supply of semi-conductors. Additionally, the Automotive Aftermarket division rose by 15.3 per cent and the Beyond Mobility Solutions sector recorded a 14.1 per cent increase in sales. 

The Board of Directors has recommended a final dividend of Rs. 280 per share for the financial year 2022-23, bringing the total dividend for the year to Rs. 480 per share, including an interim dividend of Rs. 200 per share.

Speaking about the outlook for the upcoming fiscal year, Bhattacharya commented: “As we look ahead to the fiscal year 2023-24, we recognize the challenges that lie ahead due to the ongoing uncertainty caused by certain macro factors. Despite these challenges, we remain optimistic about the automotive market, which saw record production volumes in FY 2022-23. It also saw good acquisition of projects catering to TREM5 and OBD2 regulations resulting in a strong order book, for the next 3 to 5 years. We anticipate moderate growth in India’s GDP, which will likely lead to a 5 to 6 per cent increase in the automotive market. At Bosch, we are confident in our ability to navigate these headwinds, particularly as we continue to see an increase in content per vehicle due to components supplied for exhaust gas treatment and implementation of BSVI stage 2. With this in mind, we expect total revenue from sales to grow around 15 per cent.”