Bosch India Net up 31 Percent in 2011

Bangalore: Bosch posted 1,123 crore (11.23 billion) net profit for calendar year 2011, registering 31-percent increase year-on-year, the Indian subsidiary of the German automotive component major said. Net sales and income from operations grew 20-percent Y-o-Y to 8,018 crore (80.18 billion), with exports crossing the 1,000-crore mark and posting 22-percent Y-o-Y growth. "Our growth rate, however, declined in the second half (July-December) of 2011 due to sluggish economic conditions arising out of tight liquidity, high interest rates, increase in fuel prices and overall adverse market sentiments," company Managing Director, V.K. Viswanathan, said in a statement. For Q4 (October-December) of the fiscal under review, net profit at 281 crore was 34-percent up Y-o-Y, while net sales grew 11-percent Y-o-Y to 1,919 crore. As the only listed subsidiary of Bosch group in India, the company attributed healthy rise in net profit for the year and Q4 to improved operating margin (15.7 percent), good growth in the after-market sales and record treasury income to 100 crore, up 80-percent Y-o-Y. "We witnessed improved demand in certain sectors of the automotive industry such as tractors and Light Commercial Vehicles (LCVs) despite rising interest rates and fuel prices. Robust growth in after-market and power tools businesses enabled us to register a robust growth of 20 percent in 2011," Viswanathan said. The Board of Directors recommended 50-percent dividend per share for the year as against 40-percent in 2010. Capex (Aapital Expenditure) shot up 118-percent to 659 crore during 2011. "We will invest 700 crore this year (2012) to expand capacities at our manufacturing facilities across the country," Viswanathan added. Of the net sales, the diesel systems business grew 19-percent Y-o-Y to 4,700 crore, aftermarket business to 1,800 crore, power tools business to 550 crore and starters and generators to 490 crore.