Auto components major Bosch reported a consolidated net loss of Rs 120.83 crore for the first quarter ended June affected by the coronavirus pandemic. It had posted a consolidated net profit of Rs 279.95 crore in the year-ago quarter.
Consolidated revenue from operations during the period under review stood at Rs 991.54 crore. It was at Rs 2,755.44 crore in the same quarter a year ago.
The combination of the slowdown in the automotive industry and Covid-19 affected the company’s sales in the first quarter of FY2021. The powertrain solutions division registered a decline of 78.3%.
The two-wheeler and powersports product unit witnessed a good double-digit growth during the quarter.
Outside the mobility solutions business sector, business recorded a decline of 59.9%. In June this year, the company witnessed a recovery in sales volumes after the easing of nationwide lockdown restrictions.
Multiple lockdowns in several states are adversely affecting the supply chain. With the ripple effect of this continuing to be felt in the coming years.
To secure liquidity, extensive programs to adjust manufacturing capacity and cost structures are in place. At the same time, the company is preparing for a potential switch to electrified vehicles, which will lead to a significantly reduced demand for direct manpower as compared to 2018-19. Right-sizing the organization is, therefore, an urgent need. Here, the company is following a 3R approach (restructure, reskill, redeploy), in which it has invested Rs 800 crore.
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