New Delhi, May 20 (PTI) Auto component major Bosch on Thursday posted a six-fold increase in its consolidated net profit to Rs 482 crore for the fourth quarter ended on March 31, 2021, driven by robust sales.
The company had reported a net profit of Rs 81 crore during the January-March quarter of 2019-20.
Revenue from operations rose to Rs 3,218 crore during the fourth quarter from Rs 2,237 crore in the same period of FY20, Bosch Ltd said in a regulatory filing.
For the 2020-21 fiscal, the company reported a consolidated net profit of Rs 481 crore as against Rs 650 crore in 2019-20 financial year. Revenue from operations stood at Rs 9,716 crore as compared with Rs 9,842 crore in FY20.
'Despite facing a spell of near-zero sales in the month of April and May in 2020, there has been a significant increase in the demand from the agriculture sector, mainly the tractor business,' Bosch Managing Director Soumitra Bhattacharya said.
Industry showed continued signs of recovery since the second quarter of FY 2020-21, however, it remains impacted due the uncertainties in the market, he added.
'International market volatilities in the supply chain will also continue to impact the auto sector. Furthermore, we have seen growth in the Power Tools segment, especially in the construction and e-commerce sectors,” Bhattacharya said.
He noted that the auto industry was seeing itself on a road of recovery until early this year and the company's positive results is a validation to it.
'However, with the second wave being more severe, there is a clear uncertainty in the market. With 80 per cent of our revenues driven through mobility business, we have been affected adversely,' Bhattacharya said.
The challenge will be to manage the fluctuating demand, supply chain crisis and changing consumer behaviour all at once, he added.
'While we have successfully managed the transition from BS IV to BS VI, next challenge will be transitioning to TREM 4 and 5, adoption of CAFE norms phase 2 and BS VI stage 2. Amidst the crisis, Bosch in India will continue with the investments in competence development in addition to the solutions designed and developed in India and for India,' Bhattacharya said.
Later addressing a virtual press conference, he noted that the company planned to invest around Rs 200 crore as capex in the current fiscal.
On semiconductor shortage issue, Bhattacharya noted the situation was likely to remain challenging in the current year, with any improvement expected only next year.
He stated that barring Nashik plant, all other company facilities in the country were up and running.
Terming FY21 as the most turbulent for the auto industry, Bhattacharya hoped that the current fiscal would turn out to be a better year.
The company's board approved the appointment of Markus Bamberger as Chairman of the company with effect from June 1, 2021. He replaces Bernhard Straub who has resigned with effect from May 20, 2021 due to change in area of his responsibility at global level.
The board also announced the appointment of Pawan Kumar Goenka, former MD of Mahindra and Mahindra, as an additional director designated as an independent director for a period of five years with effect from May 21, 2021 till May 20, 2026.
The board approved appointment of Bhaskar Bhat as Lead Independent Director from May 21, 2021 to March 31, 2024. Besides, the company re-appointed SV Ranganath as an Independent Director for a second term of three years with effect from July 1, 2021 to June 30, 2024.
The company's board recommended a dividend of Rs 115 per share of Rs 10 each, for the financial year ended March 31, 2021.
Shares of the company closed 7.05 per cent up at Rs 15,838.15 apiece on the BSE. PTI MSS MR MR