Bosch

Bosch Limited reported robust financial results, with revenue from operations increasing 16% QoQ to INR 49,106 million in Jan-Mar 2025. For the full FY25, revenue grew 8.1% YoY to INR 180,874 million. EBITDA for FY25 also saw a 10.3% growth, with the margin improving from 12.5% in FY24 to 12.8% in FY25, driven by higher revenue and reduced material costs. However, PAT for FY25 was 11.1% of revenue, down from 14.9% in FY24, primarily due to the removal of indexation benefit on long-term capital gains.

The mobility business was a key growth driver, achieving 14.9% QoQ and 7% YoY growth, primarily fueled by power solutions (16.9% QoQ, 5.8% YoY) and the two-wheeler business (21.4% QoQ, 18.5% YoY). The two-wheeler segment benefited from increased exhaust gas sensor sales ahead of OBD2 norms. Consumer goods and building technologies also contributed positively with 2.9% and 8.2% growth respectively. The Indian auto industry witnessed moderate growth, largely fueled by strong demand for SUVs, premium bikes, and three-wheelers.

Management emphasized its ongoing efforts in localization of components and finished goods, which contributed to easing purchase goods costs. The company inaugurated a new NOx sensor Gen-3 line at its Bidadi plant, achieved in just 67 days, with plans to scale capacity to 2.1 million sensors per year by 2027. This initiative enhances India's role in the global value chain and supports cleaner emissions, and the plant does not qualify for PLI benefits.

Bosch Limited is actively engaged in the EV space, with eAxles identified as a core offering that will remain within Bosch Limited, encompassing all components. The company is in various stages of negotiation with multiple OEMs for eAxle orders, indicating a strategic push into electrification, though no specific order wins were announced during the call. The company aims for good breakthroughs in electrification in the coming years.

The company acknowledged global and domestic macroeconomic volatility^🌐 due to trade issues, conflicts, and slowing economies, alongside challenges like inflation and weak consumer sentiment. Management also highlighted uncertainty regarding the implementation date of OBD2 norms, which could impact the two-wheeler business, and short-term uncertainties related to tariffs. Despite these, the industry remains optimistic for continued growth.

Bosch Limited continues to work with various OEMs and ecosystem players on hydrogen technology, focusing on electrolyzer development, hydrogen generation, distribution, and cost optimization. While the technology is maturing and solutions are being offered to OEMs, the overall ecosystem development is still ongoing, with no immediate commercialization timelines provided.

The company highlighted its commitment to shareholder returns, noting an increase in dividends over the past few years, reflecting a successful FY25. Bosch maintains a strong balance sheet, described as 'nearly debt free' with 'substantial liquidity,' positioning it well for future strategic investments. This financial strength allows the company to pursue growth opportunities and maintain competitiveness.