German auto component major's Indian arm Bosch Ltd's net up 19 per cent in Q3

German auto component major's Indian arm Bosch Ltd on Wednesday reported Rs 335 crore standalone net profit for the third quarter (Q3) of fiscal 2018-19, registering a 19.2 per cent annual growth over Rs 281 crore in the same period a year ago.

Standalone revenue from operations, however, remained flat (0.8 per cent growth) annually at Rs 3,096 crore for Q3 over Rs 3,072 crore in the year-ago period.

Sequentially, net profit at Rs 335 crore for the quarter is 20 per cent less than Rs 420 crore posted in the second quarter of FY19.

Likewise, revenue too declined 3.3 per cent to Rs 3,096 crore from Rs 3,201 crore in the second quarter of FY19.

Though profit before tax (PBT) grew 15.8 per cent annually to Rs 490 crore in the third quarter from Rs 423 crore a year ago, it declined 24 per cent sequentially from Rs 641 crore a quarter ago.

"Our profit was aided by improved operational efficiency, favourable product mix and higher investment income, which was partially offset by negative exchange rate on material cost," said the city-based firm in a statement here.

Company Managing Director Soumitra Bhattacharya said the quarterly results had to be viewed in the context of weak market conditions in the automotive sector.

"We are helping customers to meet the challenge of making vehicles compliant with BS (Bharat Standard) VI emission norms from April 2020 as per the Supreme Court's ruling," said Bhattacharya in the statement.

The company has recently showcased its business beyond mobility offerings, which are embracing digital platforms and IoT (Internet of Things) services.

Mobility solutions turnover decreased 0.6 per cent though the division's exports increased 6.5 per cent, which has offset lower domestic sales of 1.1 per cent.

"Within the mobility business, the powertrain solutions division declined 2.7 per cent annually due to weak automotive market, while aftermarket division grew 5.8 per cent year-on-year," he said.

The company's shareholders have approved buyback of 10.3 lakh equity shares of Rs 10 face value by way of a tender offer for cash at Rs 21,000 per share, aggregating to Rs 2,156 crore.

The buyback that opened on February 6 will close on February 20.

The company's blue-chip scrip of Rs 10 face value, however, lost Rs 712.15 per share at the end of Wednesday trading on the BSE at Rs 17,897.85 against Tuesday's closing of Rs 18,610 and opening price of Rs 18,700.

Intra-day the scrip hit a high of Rs 18,753 and a low of Rs 17,600.