1 min read.Updated: 04 Aug 2021, 05:18 PM ISTLivemint
The auto industry came under pressure early April, with Maharashtra issuing curbs, with others following suit. Automobile makers and component suppliers either stopped production or slashed output
NEW DELHI: Bosch Ltd, among the country’s leading automotive component manufacturers, reported a net profit of ₹260.3 crore for the quarter ended 30 June compared to a Rs121.5 crore net loss in the year-ago quarter following the first wave of the coronavirus pandemic which had led to a nationwide lockdown.
The Bangalore-based manufacturer had reported a profit of Rs483 crore in the fourth quarter of FY21 as production and demand picked with the unlocking of the economy.
June quarter's performance was hit because of the devastating second wave of the pandemic which led to regional curbs.
Revenue from operations grew substantially to Rs2,443 crore from Rs991.5 crore reported in the year-ago period. Sequentially, the company’s top-line dropped from Rs3,216 crore.
Bosch’s operating profit or earnings before interest, tax, depreciation and amortization (EBITDA) stood at Rs306.6 crore compared with an operating loss of Rs102.5 crore in the year ago period. Operating margins was at 12.5%.
"While the industry has shown continued signs of recovery since the second quarter of FY2020-21, the second wave of Covid-19 induced an undeniable pressure on the Indian automotive sector with a surge in infections, localized lockdowns, and lowered demand sentiment. The intensifying second wave proved a challenge for several OEMs across the country, causing them to cut production or suspend operations," said Soumitra Bhattacharya, managing director, Bosch Limited, and president, Bosch Group in India.
The auto industry came under pressure from the first week of April when Maharashtra began strict lockdown measures. Delhi, Haryana, Karnataka, Tamil Nadu and others followed suit. Automobile manufacturers and component suppliers either stopped production or reduced output significantly.
With a steady drop in infections, especially in north and south India, most automakers have resumed operations from the middle of May.