Bosch Q1 net profit marginally up 0.8% as raw material costs rise
Bengaluru: German auto components maker Bosch Ltd reported a net profit increase of a mere 0.8% in the June quarter as raw material costs increased by more than a third.
Net profit rose to Rs.378.72 crore in the three months ended 30 June from Rs.375.71 crore a year earlier. Net sales rose 8.82% to Rs.2,672.74 crore from Rs 2,456.21 crore.
The company’s total expenses rose 14% in the quarter to Rs.2,154.40 crore from Rs.1,888.86 crore. Raw material costs were up 35.25% to Rs.761.99 crore from Rs.563.40 crore a year ago.
“Bosch Limited has registered a healthy top-line growth in the quarter ended in June 2016. Although the development of the local automotive market remained subdued, we continue to invest in infrastructure and technology. We are working closely with our customers for the introduction of BS6 emission norms by 2020 and have the right products and experience to contribute towards meeting the emission standards,” Steffen Berns, managing director of Bosch Ltd, said in a filing on Friday.