Why has Bosch reported a net loss in Jun-20 quarter?
Answer
Answer
Bosch, the Bengaluru based manufacturer of auto ancillaries including auto head lights, slipped to net loss of Rs.120 crore for the Jun-20 quarter. It may be recollected that the company had reported net profit of Rs.282 crore in the Jun-19 quarter.
The pressure in the automotive original equipment manufacturer or OEM market had taken a huge toll on the performance of Bosch. For the Jun-20 quarter, the total revenues also slipped by 64% to Rs.992 crore on the back of prolonged shutdowns in their plants
Bosch has also witnessed consistent drying up of demand for its auto products. The company estimates that automobile sector will take at least 5 years to get back to normal levels and the focus will be more on the agricultural sector and consumer durables.