CHENNAI: Bosch Limited, the automotive parts supplier, reported a 64% year-on-year decline in its total revenue in the first quarter of FY 2020-21 as sales in all segments during the period were adversely affected by Covid-19.
The company's standalone revenue from operations during the June quarter stood at Rs 992 crore as against a revenue of Rs 2,755 crore in the same period last year.
It recorded a consolidated net loss of Rs 121 crore for the quarter ending during the June 2020 period, compared to a profit of Rs 282 crore reported in the same quarter previous year.
The company’s sales decreased 68.2% in the first quarter with the powertrain solutions division registering a decline of 78.3%. However, the two-wheeler and powersports product unit witnessed double-digit growth during the quarter. After the easing of nationwide lockdown restrictions, the company witnessed a recovery in sales volume.
"As anticipated, the financial year 2020-21 began on an extremely challenging note. The Indian economy is expected to witness a sharp contraction, with GDP projected to be between -4 per cent (minus four per cent) and -6 per cent in the current fiscal year.
"Multiple lockdowns in several states are adversely affecting the supply chain. With the ripple effects of this set to be felt in the coming years, we now have to do all we can to counter the business situation while exhibiting utmost care for our associates," said Soumitra Bhattacharya, the managing director of Bosch Ltd.
He further mentioned that the company's main focus for the upcoming quarters will remain on the agriculture sector, particularly on tractor demand as the monsoon season has been good this time.
"However, the auto sector as a whole will take four to five years to return to the levels of 2018-19," he added. Bhattacharya.
To deal with the challenging situation, Bosch is taking measures to manage resources and costs.
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