Bosch Ltd
Auto components maker, Bosch posted a good though muted set of numbers for its second quarter ended 30th June 2013. The company follows the calendar year (CY) ending. The company posted a 6% (YoY) rise in net sales at Rs.2307 crore and this was mainly on the back of 14% rise in exports. EBITDA margin though, due to higher operating costs came in lower at 15.7%, down 155 bps. Higher import cost due to rupee depreciation, mainly against the Euro and rise in employee costs due to annual salary hikes led to the surge in costs. It ended the quarter with a net profit at Rs.252 crore, up 2%.
The company, like all MNCs, has negligible interest outgo, with debt ( long term borrowings + short term borrowings) at less than Rs.150 crore. At end of its second quarter ended 30th June’13, its cash balance was at Rs.1304 crore. The parent Bosch holds 71.18% stake. The outlook for the company remains positive over the long term given the brand equity enjoyed by the company and diversified portfolio. In the short term there could be pressures as the auto sector itself is going through turmoil though it could get better numbers from exports.