(Reuters) -Bosch reported a higher first-quarter profit on Monday, helped by strong sales of spare auto parts to passenger and off-highway vehicles as well as demand for its consumer electronic goods.
The Indian unit of German automotive supplier Robert Bosch reported a pre-tax adjusted profit of 8.38 billion rupees ($95.7 million) in the April-June period, up from 6.11 billion rupees a year ago. The profit figure does not include a one-time gain of 5.56 billion rupees tied to the sale of its video solutions business.
Quarterly revenue climbed 11%, led by the automotive business’ 13.5% rise.
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KEY CONTEXT
Bosch, India’s top auto parts maker by market valuation, is the first among its peers to report results in a quarter where overall auto sales by manufacturers to dealers dropped 5%.
Analysts at Motilal Oswal said the company likely benefited from higher after-market sales of auto parts.
The automotive business, Bosch’s biggest segment, contributes more than 80% of overall revenue.
India is a key hub for Bosch, with a focus on cost-effective making of parts ranging from fuel injectors to spark plugs. The unit gets 90% of its revenue from local sales.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth rating* analyst price yield
(%) s target** (%)
Bosch Ltd 49.13 40.89 10.46 13.11 Hold 4 1.34 1.27
Samvardhana 21.02 8.86 7.89 20.35 Buy 21 0.84 0.58
Motherson
International Ltd
UNO Minda Ltd 46.41 25.17 18.21 26.70 Buy 16 0.92 0.22
Sona BLW Precision 35.71 19.75 23.01 17.43 Buy 16 0.81 0.71
Forgings Ltd
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.5790 Indian rupees
(Reporting by Nandan Mandayam in Bengaluru; Editing by Harikrishnan Nair and Sahal Muhammed)
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