← Throughline · holding view Deep analysis ↗ Q4 FY25
BOSCHLTD Bosch Limited · Capital goods Q4 FY25 · concall
Pattern: pli plants timeline financials

Refused to commit on mobility segment breakup 2w.

2 deflections · 6 weak · 8 clean — pushback across 8 of 16 Q&A turns

Focused evidence 8 of 16

Pramod Amte · Unknownweak

When will your PLI related plants start coming up and you will start accounting in your financials?

So, we are screening of course all the PLI schemes constantly. Currently, as already mentioned, this plant is not ready for the PLI, but we are screening all the time and we are in close contact to the legislations and rules and regulations.

Sriram · Unknowndeflection

Within the mobility space, what is the breakup between two wheeler, passenger vehicle and CV? And for the EV business what will be our scope of work given other unlisted Bosch entities?

So, I will take up the first question, what we are not doing is that we do not have a segment reporting in this way. But we look at the automotive as the total.

Annamalai Jayaraj (chat box) · B&K Securitiesweak

Any update on Trump tariff specification implementation?

From the government there is no change in the date of implementation, that stays as it is. We from our side are prepared to roll it out as soon as the dates are sort of confirmed. As of now, we do not have any further information of any change of dates. Although it looks more and more certain that the current dates may not happen, so we are also crossing our fingers that rates do hold on and happen as planned.

Annamalai Jayaraj (chat box) · B&K Securitiesweak

On exports - considering current volatility in global markets, do we see any more opportunity coming up for us?

This is a very dynamic situation. Eventually what matters most is what is the landed cost and how is that making your benefit to the customer. There are opportunities coming up all the time and we will continue to capture those opportunities and enlarge on them. But there may also be some short-term uncertainties. There are multiple FTAs on the cards for India - a trade deal likely with the EU and the US coming up, and one done with the UK. Exports is a high priority for us, we certainly want to do more from India.

Iqbal Khan · Unknowndeflection

On eAxle - do you have orders in place from any of these OEMs?

On the eAxle, as I have said before, we are working with all the OEMs, talking to them, and looking at their platforms. We are in several stages of negotiation with different OEMs, and I cannot be more specific than that in a forum like this right now. As and when we close the commercials or we are ready to announce, we will certainly come back to you.

Iqbal Khan · Unknownweak

This quarter's superb sales performance - largely contributed by tractors, passenger cars and two-wheeler in anticipation of OBD norms. How sustainable is this going ahead?

We had a very good revenue this quarter, and you should also be aware that within this revenue we see across in the sales of our products. But we had also closed in this quarter one big application service project which you can also see reflected in the other expenses, because the cost part of this revenue coming out of services or in this case a big project is reflected in the other expenses. So therefore, it is a balance out of we close big project in this quarter, but we also had very good sales of our production.

Annamalai Jayaraj (chat box) · B&K Securitiesweak

On hydrogen engine - we have been working with a major Indian OEM, what are the current updates?

We have been working with almost all OEMs and also quite a lot of non-mobility players, and even ecosystem players on the hydrogen topic. There is still quite some things to do on the hydrogen ecosystem development - electrolyze developments, hydrogen generation possibilities, cost optimizations on hydrogen, distribution of hydrogen pumping. From our side, the technology is maturing, and we are offering our solutions and we are maturing our solutions together with our OEMs continuously. The work we do with our OEMs is quite advanced and that is going quite well.

Annamalai Jayaraj (chat box) · B&K Securitiesweak

For the next two to three years, other than industry growth, what will be our growth drivers?

We always aim to grow beyond the typical industry growth rates driven by primarily topics like premiumization which help us get into advanced technologies which get introduced. We will continuously work with OEMs on successful introduction of new norms which has been continuously happening. Electrification, of course, is an area which is constantly on our focus and where we hope to have good breakthroughs in the coming years as well.

▸ Other Q&A (8)
Pramod Amte · Unknown

On the Nox plant - does it qualify under PLI? What is the extent of benefit?

No, this plant does not qualify under PLI and we did not apply.

Pramod Amte · Unknown

On purchase/traded goods - they seem to have come under control and now almost 40% of sales. What has helped you here and where will this cost settle down?

What has helped us is our constantly work on the localization, and not only on the finished goods, but what we mentioned in the last quarter also that we strongly work on the localization of components, and whatever is possible in India. You see here now also the first outcome that we make progress in relation between traded and manufacturing goods. Nevertheless, what is coming up new, of course, we first localize the finished goods and then we go step by step into the localization also of the components. Because if you localize everything immediately, we have high risk on our quality which we do not want to have.

Pramod Amte · Unknown

On two-wheeler growth - have you won any new clients in OBD 2?

Yes, we are more or less serving all the major OEMs in the two wheeler spectrum, and this we continue to do as we go along. So I do not think we have any OEM who's not in our scope right now.

Sriram · Unknown

On the second question about EV scope vs other Bosch entities?

We have a company which is dealing with electronics outside of Bosch Limited. A large part of the electronics are positive business for us and they get supplied to us and then we take them to market. There is another company which is the chassis systems which deals with brakes which does direct breaking business to the market. In terms of electrification, the eAxles, which are the largest components in the eAxle business, will stay within Bosch Limited.

Sriram · Unknown

So our scope of work is mainly eAxles? And motor controller and other parts will be sourced from electronics?

Yes, that's correct. And eAxle as a product includes everything. Electronics will continue to get sourced, but as an eAxle, we will have the complete ownership at Bosch Limited.

Annamalai Jayaraj (chat box) · B&K Securities

Any add-on on exports outlook?

As you mentioned before, the NOx line for example, the new one, here we have the new chance export business we have in the spark plugs, the export business and we see overall, also for the next year a slight increase in the export business. We also have injectors where we are on export already. So, overall, we will see for the next year a slight increase. Most important for us is competitiveness.

Annamalai Jayaraj (question box) · B&K Securities

Dividend has been increasing for last two-three years - what will be the dividend distribution policy?

We had in the Financial Year '24-'25, we had really a very successful year. If you look at the EBIT and the profit before tax, you can see the performance of the company. We had 8.1% revenue increase in the operations, EBIT growth from 10% to 10.7%. We have a stable or a good market outlook. We also have strong balance sheet, nearly debt free, substantial liquidity. So we are in a very strong position to make the right investments, strategic investments in the future. And therefore, we decided we would like to appreciate our shareholders in this year. And therefore, this was then the decision that this should be also reflected in the dividend for our shareholders.

Annamalai Jayaraj (chat box) · B&K Securities

Have we received any new orders on electric two wheelers or three wheelers?

Electric two wheelers, no, we have not received any new orders as such on electric two wheelers. The current order book continues as is. On three-wheeler, if there's anything, we will certainly update you.

▸ Prepared remarks (5 blocks)
Thank you and good morning, everyone. Thank you for joining us today. I'll begin with an overview of the global and Indian macroeconomic landscape: Global and domestic events are creating volatility due to trade issues, conflicts, and slowing economy. The UN has lowered its 2025 global growth forecast from <strong>3.3%</strong> to 2.8% citing trade and geopolitical risks, talent scarcity, impact of AI on productivity are key themes in the global labour market currently. Domestically, RBI's monetary policy and rate cuts will be significant, potentially boosting spending in the automotive and other markets. India is projected to remain the fastest growing economy with the RBI forecasting 6.2% to 6.5% growth for FY '26, driven by rural consumption. Service export should improve, and the government will maintain fiscal responsibility. In closing, India has positioned itself as the fourth largest economy, a position we aim to maintain through 2025 as we strive for rapid and sustained growth. In Q4 FY '25, the Indian auto industry witnessed moderate growth, largely fueled by strong demand for SUVs, premium bikes and three wheelers. While passenger vehicle sales edged up slightly, small cars and sedans faced headwinds. The commercial vehicle segments presented a mixed picture with the electric and CNG models gaining traction. Two wheelers and tractors on the other hand, enjoyed a boost from new product launches, festive season sales, and supportive rural demand. The mobility business demonstrated strong performance in January to March '25, achieving 14.9% quarter-on-quarter growth compared to January-March 2024.
This growth was primarily fueled by a <strong>16.9%</strong> surge in the power solutions business, driven by increased demand for diesel components, particularly from the off-highway segment as well as for electronic control and vehicle control units. A 7.9% expansion of the mobility aftermarket business attributable to high demand for diesel systems, especially from OEMs, filters, and spark plugs. A substantial 21.4% growth in the two-wheeler business, mainly due to the increased sales of exhaust gas sensors in anticipation of the OBD 2 norms implementation effective April 1st, 2025. Now, we are proud to announce the inauguration of our Nox sensor Gen-3 line at our plant in Bidadi. This marks a significant step in our clean mobility strategy, achieved in just 67 days through exceptional teamwork and technological innovation. The NOx sensor is already enabling cleaner emissions for Indian OEMs, and we are poised to serve global OEMs as well. With a series of production underway, we are scaling to a capacity of 2.1 million sensors per year by 2027. Bosch Limited is proud to have won the prestigious Confederation of Indian Industry Innovation Award ranking among the top 20 most innovative companies in India. Bosch Limited was awarded the Auto Ancillary Category at the Free Press Journal's Best Annual Reports Awards 2024 for its clarity, consistency and strong narrative, and depth of disclosure. I thank you for listening patiently through the call. We are now ready to address your questions. Thank you.
Revenue from operation: Quarter-on-quarter, revenue from operation stood at INR <strong>49,106 million</strong>, which is a 16% increase quarter-on-quarter over January to March '24. FY '24 versus FY '25, likewise, we see revenue from operations in April-March '25 stood at INR 180,874 million, which is a growth of 8.1% over April-March '24. The growth in revenue was primarily driven by power solutions, mobility aftermarket, two-wheeler and power sports business.
In January-March '25 was INR <strong>6,469 million</strong>, which grew by 16.1% over the same quarter of the previous year. The improvement in EBITDA is mainly on account of higher revenue and reduced material cost. EBITDA for FY '24-'25 was INR 23,097 million, which grew by 10.3% as compared to FY '23-'24. EBITDA as a percentage of total revenue improved from 12.5% in FY '23-'24 to 12.8% in FY '24-'25. The improvement in EBITDA margin is mainly driven by revenue growth, reduction in material cost, and budgetary control on expenses.
The profit after tax stood at <strong>11.3% of revenue</strong> from operations as compared to 3.3% over the same quarter of the previous year. The reduction in PAT is primarily due to removal of indexation benefit on long term capital gains from FY '24-'25 onwards. Likewise, profit after tax for FY '24-'25 stood at 11.1% of revenue from operations as compared to 14.9% FY '23-'24. FY '23-24 had an exceptional item, namely profit on sale of project house mobility solutions business.
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