Bosch Ltd : Reports muted operational performance in Q2FY22BOSCHLTD - 19188 Change: -127.55 (-0.66 %)
News: Net sales for the quarter came in on expected lines at Rs.2,918 crore, up 18% YoY. EBITDA in Q2FY22 stood at Rs.358 crore with corresponding EBITDA margins at 12.3%, down 20 bps QoQ amid sharp contraction in gross margins (390 bps QoQ). PAT in Q2FY22 was at Rs.372 crore (vs. Rs.260 crore in Q1FY22 and loss in base quarter) primarily supported by lower effective tax rate which for the quarter at 6.4%.
Views: The margin performance at the company was below our expectation as gross margin decline was more than anticipated. On the cash flow front, amidst adverse working capital cycle, CFO generation was in the negative territory for H1FY22. Separately the company has attained board approval for acquisition of 26% stake (for ~Rs. 13.4 crore) in Autozilla Sols Pvt Ltd i.e. a start-up offering B2B e-commerce solutions for manufacturers, sellers and buyers of automobile spare parts.