InvestorQ : Why did Bosch report a net loss in the Sep-20 quarter?
Arya Nanda made post

Why did Bosch report a net loss in the Sep-20 quarter?

Anjana Aiyar answered.
2 years ago

That was broadly expected considering that pressure that auto stocks had been under. Also demand traction is yet to really build up. Bosch reported consolidated net loss of Rs.64.57 crore in the Sep-20 quarter. This is in contrast to a net profit of Rs.98.40 crore in the Sep-19 quarter.

There was some positive growth in revenues, albeit marginal, at Rs.2479 crore. However, the real problem is at an industry level. For example, the Indian automotive market is in the midst of a structural change as old demand models are changing.

However, Bosch has been planning strategically. Its strategy of restructuring and re-skilling is on track. The company has provided an additional amount of Rs 400 crore which has also been provided as an exceptional sum in this quarter, leading to the loss.

While auto slowdown is a reality, the good news is that there is a sequential recovery in specific segments led by two-wheelers and tractors. While the traditional auto ancillary segment came under pressure, the sales of the Powertrain Solutions Business saw a rise. The company remained optimist about the future.