Bosch Sees 14% Jump in Q1 Profit Amid Auto Sector Growth

Auto components maker Bosch reported a 14% increase in its consolidated profit after tax, reaching Rs 466 crore in Q1 FY 2024. The growth was attributed to continuous demand in the passenger car segment and overall positive sentiment in the automotive sector, despite sluggish retail sales.

Auto components maker Bosch on Tuesday announced a 14% rise in its consolidated profit after tax, hitting Rs 466 crore for the first quarter ending June 30, 2024.

In the same quarter last fiscal, the company reported a profit after tax of Rs 409 crore. Bosch's total income for the period also climbed to Rs 4,496 crore, compared to Rs 4,346 crore in the prior year, according to a regulatory filing.

Guruprasad Mudlapur, Bosch Ltd's Managing Director, stated, "The financial year commenced with moderate growth in the automotive market despite challenges like high base effects from the previous year, election-related slowdowns, and summer heatwaves." Growth in the passenger car segment, alongside production and wholesale increases, contributed to the profit rise. Nevertheless, sluggish retail sales have led to higher pipeline inventory, Mudlapur noted. He added that the Indian economy's growth and increased disposable incomes bode well for the auto sector.

Looking ahead, Bosch plans to strengthen its portfolio through localization and capitalize on alternate fuel technologies and electric vehicles, positioning itself for future mobility advancements.

On the stock market, Bosch shares ended 1.09% higher on Tuesday, closing at Rs 32,700 apiece on the BSE.

(With inputs from agencies.)