Bosch Q4 Review - Margin Challenges Persist: ICICI Securities
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ICICI Securities Report
Bosch Ltd.’s Q4 FY21 operating performance missed consensus estimates as adjusted Ebitda margin fell 95 basis points YoY to 14.3%.
Gross margins slipped 745 basis points YoY to 38.6% due to weaker product mix (traded goods share rose to ~71% of raw material cost) and higher commodity costs.
Automotive revenues rose ~47% YoY on the back of mobility division (up 57% YoY) while non-automotive revenues grew ~25%.
We expect growth tailwind of tractor segment to slow down in FY22/23 while lack of diesel growth in passenger vehicles, market share loss in medium and heavy commercial vehicle is likely to keep growth in check.
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