Why Did Bosch Report a 2% Decline in Q4 Net Profit?

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Why Did Bosch Report a 2% Decline in Q4 Net Profit?

Synopsis

Bosch Limited faces challenges as its Q4 net profit sees a 2% decline. With a profit after tax of Rs 554 crore, the company remains optimistic about growth in India’s automotive sector, emphasizing digitalization and sustainable mobility. Discover how Bosch is navigating market challenges while reporting growth in revenue.

Key Takeaways

  • Q4 FY25 net profit declined by 2% to Rs 554 crore.
  • Revenue from operations increased to Rs 4,911 crore.
  • Annual revenue rose to Rs 18,087 crore.
  • Total expenses increased by 15% YoY.
  • Bosch focuses on digitalization and sustainable mobility.

Mumbai, May 28 (NationPress) Bosch Limited announced a 2% year-on-year (YoY) decrease in its consolidated net profit for the fourth quarter ending March 31 (Q4 FY25), reporting a profit after tax (PAT) of Rs 554 crore.

This figure is a drop from Rs 564 crore achieved in the same quarter of the previous fiscal year (Q4 FY24), as disclosed in their stock exchange announcement.

For the entire financial year FY25, Bosch experienced a 19% decline in consolidated net profit, which fell to Rs 2,013 crore from Rs 2,490 crore in FY24.

Nonetheless, the company recorded a promising increase in its revenue from operations, which rose to Rs 4,911 crore in Q4, compared to Rs 4,233 crore in the corresponding quarter of the previous year.

Bosch’s annual revenue also showed significant growth, climbing to Rs 18,087 crore from Rs 16,727 crore the prior year.

Additionally, the company observed a rise in total expenses during the quarter, which surged by approximately 15% YoY to Rs 4,369 crore from Rs 3,798.9 crore.

Bosch Managing Director Guruprasad Mudlapur stated that the company concluded the financial year with strong revenue growth and enhanced sales across all business sectors, despite facing market challenges.

"In a tough business landscape, we finished FY24-25 with solid revenue growth and improved sales in all sectors," Mudlapur expressed.

He further emphasized that India is poised to become a significant automotive hub, with an increasing emphasis on digitalization, electrification, and sustainable mobility.

"In the future, we anticipate substantial growth in India as a strategic market, with a swift transition towards digitalization, electrification, and sustainable mobility," Mudlapur stated.

Looking forward, Bosch holds a positive outlook for growth within the Indian market. The board has proposed a final dividend of Rs 512 per equity share of Rs 10 each, pending shareholder approval.

Moreover, the board has reappointed Mudlapur as Managing Director for an additional two-year term commencing July 1, 2026.

Bosch shares were reported to be trading at Rs 31,355 on the National Stock Exchange (NSE), reflecting a decline of Rs 1,130 or 3.48%.

Point of View

It is crucial to acknowledge Bosch's resilience in a challenging market. Despite the reported profit decline, their focus on innovation and growth in India's automotive sector reflects a strategic approach that aligns with future trends in digitalization and sustainability. Bosch's commitment to navigating these challenges is commendable.
NationPress
21/07/2025

Frequently Asked Questions

What caused Bosch's decline in net profit?
The decline in Bosch's net profit can be attributed to various market challenges, despite achieving strong revenue growth in operations.
How did Bosch's revenue perform in Q4 FY25?
Bosch reported a significant increase in revenue from operations, rising to Rs 4,911 crore in Q4 FY25 from Rs 4,233 crore in the same quarter last year.
What is Bosch's outlook for the Indian market?
Bosch remains optimistic about growth in India, emphasizing the importance of digitalization, electrification, and sustainable mobility.
What dividend has Bosch proposed?
The board has recommended a final dividend of Rs 512 per equity share, pending approval from shareholders.
Who is the Managing Director of Bosch?
Guruprasad Mudlapur is the Managing Director of Bosch, having been reappointed for another two-year term.