India’s Bosch posts smallest rise in profit in five quarters

BENGALURU : Auto parts-maker Bosch, the Indian unit of German automotive supplier Robert Bosch GmbH, reported its smallest profit climb in the last five quarters on Tuesday as its inventory built up due to slow retail sales of cars.
Its net profit rose almost 14 per cent year-on-year to 4.66 billion rupees ($55.5 million) in the first quarter ended June 30.
The company’s revenue increased about 4 per cent to 43.17 billion rupees, it said.
KEY CONTEXT
Bosch makes auto parts and accessories for cars, two wheelers and railways, among others. Its automotive products business accounts for about 87 per cent of the total revenue.
Retail car sales fell in May and June due to heatwaves, but rose in April. Due to this, inventory for automakers increased and dampened demand for Bosch’s products.
Its quarterly revenue growth was driven by a 16.1 per cent climb in automobile production. Production had risen 21.2 per cent in the March quarter, according to industry data.
PEER COMPARISON
Valuation Estimates (next 12 Analysts’ sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth growth rating* analysts price yield
target** (%)
Bosch 45.78 37.33 11.71 26.46 Hold 4 1.24 1.07
Samvardhana 25.42 10.32 16.66 46.04 Buy 19 1.02 0.46
Motherson
International
Sona BLW Precision 49.31 29.70 24.88 55.37 Buy 17 0.90 0.46
Forgings
UNO Minda 47.20 27.40 17.48 25.57 Buy 17 1.02 0.21
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
– All data from LSEG IBES
– $1 = 83.9152 Indian rupees