Bosch Q1 Net Profit Growth Stands At Rs 326 crore

The auto component manufacturer, Bosch today posted a good set of numbers for quarter ended March 31, 2014. The company follows 31st December as financial year closure.

Bosch posted a 10.95% growth for the March quarter on yearly basis and reported a revenue of Rs 2450 crore in Q1CY14 against Rs 2209 crore in Q1CY13. However, the total expenses of the company posted a higher growth of 12.31% on yearly basis during the quarter under review. This increase resulted in lower growth of 4.40% in Bosch's EBITDA on yearly basis compared to its revenue growth. The company's EBITDA stood at Rs 399 crore in Q1CY14. However, the company's net profit for the quarter showed much better growth of 25.61% on yearly basis due to 60% higher other income during Q1CY14. Its net profit stood at Rs 326 crore for the same period.

On profitability front, Bosch showed contraction of 102 basis points in its EBITDA margin to 16.27 % in Q1CY14 against 17.29 % during the same period last year due to higher growth in its total expenses, compared to its revenue growth during the same period. However, the net profit margin for the company showed an expansion of 155 basis points to 13.32 % in Q1CY14 against 11.76 % in Q1FY13 due to higher other income during the March quarter.

The automobile industry in India is facing difficult time due to overall economic slowdown across the country. However, the auto component manufacturer showed a considerably good performance during this bad period. The revival in automobile industry is expected to boost further demand for Bosch's products. Hence, we recommend our readers to stay invested in this stock for further appreciation in anticipation of revival in automobile industry in near future.