BENGALURU (Reuters) – Bosch, the Indian arm of German automotive supplier Robert Bosch GmbH, reported a 62.5% climb in third-quarter profit on Tuesday, buoyed by strong demand for its automotive parts.
The company’s net profit rose year-on-year to 5.18 billion rupees ($62.4 million) in the three months to Dec. 31.
Bosch makes auto parts such as braking systems and batteries, and also has a powertrain business that provides exhaust gas treatment components.
The auto components and train businesses are clubbed under what the company calls “automotive products”, which accounts for more than 86% of total revenue.
Demand for auto parts shot up as vehicle production jumped 21% year-on-year in the quarter, according to data from industry body Society of Indian Automobile Manufacturers.
As a result, revenue from the automotive products segment climbed almost 13%, driving total revenue up almost 15% to 42.05 billion rupees.
This helped outpace the company’s 11% rise in total expenses. Raw material costs jumped 16% as the global prices of some metals, including steel, rose in the quarter on aggressive demand from China.
The company also had a one-time item of 588 million rupees in the quarter as a reversed provision relating to regulatory changes for some emission rules in India.
Its profit before exceptional items and taxes rose 44% year-on-year.
($1 = 82.9870 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Janane Venkatraman)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.