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Bosch Q1FY22 Result Analysis | Yadnya Investment Academy

Bosch Q1FY22 Result Analysis | Yadnya Investment Academy

Published on 11 August 2021 Views 22 Comments 0

Q1FY22 results

 

  • The revenue for Q1FY22 stood at Rs. 2,444 crores. The revenue declined by (-24%) on QoQ basis and increased by of 146% on YoY basis due to lower base of Q1FY21.
  • The operating profit declined by (-45%) QoQ in Q1FY22 and stood at Rs. 406 crores. It also saw a growth of 472% on YoY basis, again the reason being a lower base in Q1 of last year.
  • The operating profit margin stood at 17%. In Q1FY21 the margin was 7% and in Q4FY21, the operating profit margin stood at 23%. The increase in operating profit margin can be attributed to improvement product mix and increase in volume of components traded.
  • Profit before tax turned positive in Q1FY22 to Rs. 335 crores when compared on YoY basis. PBT also registered a QoQ decline of (-48%).
  • Profit after tax stood at Rs. 260 crores. The company had lost Rs. (-121) crores during Q1FY21. Net profit also declined by (-46)% on QoQ basis.

Revenue Trend

Operating profit trend

 

Comments by MD & CEO

  • Industry was showing signs of recovery from Q2FY21 onwards.
  • The second wave impacted the recovery by surge in infections, localized lockdowns and lower demand due to sentiments.
  • OEMs cut their production and also suspended operations due to second wave.

Business Highlights

  • Company is cautious on its outlook as global supply chain has been impacted due to pandemic.
  • Global semiconductor issue would continue throughout 2021. This could also cause trouble in meeting underlying demand in 2022.
  • The company believes that after 2025, EV penetration could reach double digits.
  • The business will be maintaining a cautious outlook due to possible third wave of COVID, uncertain economic environment and unpredictability of international supply chain.
  • Believes that transition into ABS is a good growth opportunity.
  • The company has been able to pass on some portion of increased commodity costs.
  • The company gave Rs. 370 crores – 400 crores of capex guidance for FY22.

Outlook

  • Opportunity for Bosch will increase as content per vehicle would increase due to adaptation of new technology and EV transformation. CV revival could also add to improve in performance.
  • Bosch aims to improve its aftermarket sales from 20% currently to 25% in upcoming couple of years.
  • Regulatory changes such as CAFÉ, BSVI and TREM IV & V in tractors can provide opportunities for the company.
  • Improvement in the semiconductor shortage scenario could have a positive impact on the revenue.
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