Bosch Share Price Rises 4% On Strong Q2 Operational Performance

Bosch shares saw a notable rise of up to 3.62% on Wednesday, November 13, 2024, reaching an intraday high of Rs 34,450.55 per share. This surge in the stock price comes after the company reported strong operational results for the September quarter of FY25 (Q2 FY25), marking a solid financial performance across its diverse business segments.

Key Highlights of Bosch’s Q2 FY25 Financial Performance

Bosch’s impressive performance was highlighted by a 14.1% year-on-year (YoY) increase in operating profit (EBITDA), which rose to Rs 560.5 crore for Q2 FY25, up from Rs 491.3 crore in the same quarter last year. The company’s EBITDA margin also expanded by 90 basis points (bps), improving from 11.9% in Q2 FY24 to 12.8% in Q2 FY25.

In terms of revenue, Bosch posted a 6.4% YoY growth, reaching Rs 4,394.3 crore for the September quarter, up from Rs 4,130.1 crore in Q2 FY24. However, despite the positive operational performance, the company’s net profit declined sharply by 46.4% YoY, falling to Rs 535.9 crore in Q2 FY25, compared to Rs 999.8 crore in Q2 FY24.

Bosch’s Diverse Portfolio and Strategic Focus Areas

Bosch operates across a wide range of sectors, including automotive, industrial, consumer goods, and energy & building technologies. Its diversified portfolio includes everything from fuel injection systems and automotive aftermarket services to industrial machinery, power tools, and security solutions. The company’s focus on innovation is aimed at improving mobility, safety, and efficiency in its products and services.

• Automotive Solutions: Bosch continues to make strides in mobility solutions, particularly in electric vehicle powertrains, both for passenger and commercial vehicles. The company also recently introduced a Hydrogen IC Engine in FY24, showcased in a demo truck, highlighting its potential for future applications. Bosch remains committed to CNG and flex-fuel technologies and is advancing lambda sensor technology in the two-wheeler segment to meet the new OBD2.2 regulatory standards.
• Automotive Aftermarket: Bosch operates India’s largest multi-brand car service network, with over 50,000 retail touchpoints across 650 districts. The company has also entered the home power backup market with the launch of its Bosch I6 Inverter Battery.
• Consumer Goods: Bosch’s consumer goods division offers a wide range of products, including power tools, accessories, and measuring devices, catering to both professionals and DIY enthusiasts. With its Engineering Centre in Chennai, Bosch achieved a robust 16% growth in FY24, supported by strategic marketing initiatives.
• Building Technologies: Bosch provides advanced security, safety, and communication solutions, including video surveillance, fire detection, and access management systems. In FY24, the company secured major projects across multiple sectors, including transportation, government, commercial, education, and healthcare.
• Energy and Building Solutions: Bosch’s energy efficiency division focuses on reducing CO2 emissions and energy costs. It serves key clients in industries such as pharmaceuticals, FMCG, and healthcare.