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Bangalore, Feb 27 (IANS) German automotive technology major Bosch's Indian subsidiary Bosch Ltd posted a net profit of Rs.958 crore for the fiscal 2012 as against Rs.1,123 crore, registering a decline of 15 percent year-on-year (YoY).
In a regulatory filing Wednesday, the company said net sales, however, increased to Rs.9,028 crore for the fiscal (financial year 2012) under review from Rs.8,486 crore, registering a marginal growth of 6.4 percent YoY.
For the fourth quarter (October-December) of the fiscal, net profit plunged 39 percent YoY to Rs.172 crore from Rs.281 crore in the same period a year ago (2011), although total income increased marginally 4.5 percent YoY to Rs.2,245 crore from Rs.2,148 crore.
"The decline in profits was caused by higher material costs due to unfavourable exchange rates, a higher depreciation on account of a higher capital base and employee costs," Bosch managing director Steffen Berns told reporters here.
Net profit for the year was 11 percent of the net sales in 2012 as against 14 percent in 2011.
Profit before tax also declined 14 percent YoY to Rs.1,346 crore in 2012 from Rs.1,574 crore in 2011, accounting for 15.8 percent of net sales in 2012 as against 19.7 percent in 2011, a decline of 3.9 percent YoY.
Admitting that sales growth was below 2011 owing to weak automotive market and global economic slowdown, Berns said exports too declined nine percent YoY to Rs.940 crore from Rs.1,034 crore year ago due to the euro zone crisis.
"The economic downtrend continued into the fourth quarter. The overall automotive production increased marginally and the heavy/medium commercial vehicle and tractor segments, which contribute significantly to our business, declined sharply," Berns recalled.
Most of the sales came from starter motors and generators division, automotive aftermarket and non-automotive business.
The diesel systems division, however, stagnated due to exports and weak markets in heavy commercial vehicle and tractor segment.
The company is approaching 2013 with cautious optimism and with tight cost control until clear signs of improvement emerge.
"We are convinced of the strong growth perspectives of the Indian market in the mid-term and long-term and therefore continue our investments into new technology and capacity expansion for the future," Berns pointed out.
The company made a capital investment of Rs.934 crore during 2012, an increase of 11 percent over 2011.
"We are strongly committed to India and looking for further growth with products designed for the local market. We continue to invest in training and development of our employees, while retaining and attracting talent for expansion plans," Berns added.
The company's board of directors declared a divided of Rs.60 per share for 2012 as against Rs.50 per share in 2011.
The company's share price, however, slumped Rs.105 in value at the close of trading on the Bombay Stock Exchange (BSE) to Rs.8,821 from a opening rate of Rs.8,926 earlier in the day.