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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