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About the company

Founded in 1951, Bosch Limited (Bosch or the Company) is Indias leading supplier of
technology and services in the areas of automotive and industrial technology, consumer goods
and building technology. Additionally, the Company also has the largest development centre,
outside Germany, for end to end engineering and technology solutions.
It is the flagship Company of the Bosch Group. The Bosch Group holds 71.18% stake in Bosch
Limited. The Company is headquartered in Bangalore with manufacturing facilities at Bangalore,
Naganathapura (near Bangalore), Nashik, Jaipur and Goa.
Its Automotive Technology division includes Diesel and Gasoline Fuel Injection Systems, Car
Multimedia Systems, Auto Electricals and Accessories, Starters and Generators, Energy and
Body Systems. Its Industrial Technology division includes Packaging Machines, Special Purpose
Machines, Solar Energy and its consumer goods and building Technology division includes
power tools, security system.

Standalone

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Particulars

FY 2010

FY 2011

FY 2012

FY 2013

FY 2015

Total Income from Operations

6,899.40

8,162.06

8,659.07

8,820.06

12,085.48

Expenses

5,628.67

6,647.39

7,309.79

7,529.04

10,104.15

Earnings Before Other Income, Interest, Tax

1,270.73

1,514.67

1,349.28

1,291.02

1,981.33

and Depreciation (Operating Profit)


Depreciation

253.97

257.84

366.92

384.20

548.42

Finance Costs

(114.43)

(184.25)

5.52

2.89

14.32

Other income

71.60

132.91

369.23

352.62

565.30

PBT

1,202.79

1,573.99

1,346.07

1,256.55

1,955.85

Tax

343.89

451.43

387.90

371.87

618.20

PAT (before Minority Interest and share of

858.90

1,122.56

958.17

884.68

1,337.65

Associates)

Standalone
Particulars

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FY 2010

FY 2011

FY 2012

FY 2013

FY 2015

Operating Profit Margin Ratio

18.42

18.56

15.58

14.64

16.39

Net Profit Margin Ratio

12.45

13.75

11.07

10.03

11.07

Operating profit margin is a measurement of the proportion of a companys revenue that is left
over after paying for production costs such as raw materials, salaries and administrative costs.
Net profit margin is arrived at by deducting non operating expenses such as depreciation, finance
costs and taxes out of operating profit and shows what is left for the shareholders as a percentage
of net sales. Together these ratios help in understanding the cost and profit structure of the firm
and analysing business inefficiencies

Sources of Funds / Liabilities


Particulars

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FY 2010

FY 2011

FY 2012

FY 2013

FY 2015

31.40

31.40

31.40

31.40

31.40

Reserves & Surplus

4,066.64

4,697.04

5,541.86

6,262.90

7,315.60

Net worth (shareholders funds)

4,098.04

4,728.44

5,573.26

6,294.30

7,347.00

276.39

227.31

181.35

128.90

54.20

1,863.36

1,966.46

1,897.43

2,207.20

2,551.10

208.77

251.78

290.80

478.50

6,237.79

7,130.98

7,903.82

8,921.20

10,430.80

Share Capital

Long term borrowings


Current liabilities
Other long term liabilities and
provisions
Total Liabilities

Application of Funds / Assets


Particulars

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FY 2010

FY 2011

FY 2012

FY 2013

FY 2015

660.20

912.41

1,280.29

1,394.90

1,243.60

Noncurrent Investments

1,607.30

447.74

449.98

985.00

2,624.60

Current assets

3,752.09

5,210.47

5,692.72

5,979.80

5,926.50

332.76

225.63

262.60

218.90

218.20

227.60

255.20

298.90

417.20

6,237.79

7,130.98

7,903.82

8,921.20

10,430.80

Fixed Assets

Long term advances and other


noncurrent assets
Deferred Tax Assets
Total assets

Efficiency Analysis
(%)

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Particulars

FY 2010

FY 2011

FY 2012

FY 2013

FY 2015

ROCE

29.05

26.32

27.23

20.10

26.77

ROE / RONW

20.96

20.14

20.26

14.06

18.21

Return on Capital Employed (ROCE) measures a companys profitability from its overall
operations by calculating the return generated on the total capital invested in the business (i.e.
equity + debt). Return on Equity (ROE) or Return on Net worth (RONW) measures the amount
of profit which the company generates on money invested by the equity shareholders. In short,
ROE draws attention to the return generated by the shareholders on their investment in the
business. Together these ratios can be used in comparing the profitability of the company with
other companies in the same industry.

Dividend History
Rate of dividend (of face value)

Rs.

FY 2008

250 %

25.00

FY 2009

300 %

30.00

FY 2010

400 %

40.00

FY 2011

1,350 %

135.00

Year

FY 2012

600 %

60.00

FY 2013

550 %

55.00

* Closing Price as on the date of declaration of final (or last) dividend for the Financial Year.
The Company has maintained an average dividend yield of 1.23 % over the last 5 financial years.
Liquidity and Credit Analysis

Current Ratio
Higher current ratio implies healthier short term liquidity comfort level. A current ratio below 1
indicates that the company may not be able to meet its obligations in the short run. However, it is
not always a matter of worry if this ratio temporarily falls below 1 as many times companies
squeeze out short term cash sources to achieve a capital intensive plan with a longer term
outlook. Boschs average current ratio over the last 5 financial years has been 2.54 times which
indicates that the Company has been maintaining sufficient cash to meet its short term
obligations.
Long Term Debt to Equity Ratio
Companies operating with high debt to equity on their balance sheets are vulnerable to economic
cycles. In times of slowdown in economy, companies with high levels of debt find it increasingly
difficult to service the interest on their borrowings as profit margins decline. We believe that long
term debt to equity ratio higher than 0.6 - 0.8 could affect the business of a company and its
results of operations.
Boschs average long term debt to equity ratio over the last 5 financial years has been 0.04 which
indicates that the Company is operating with a low level of debt.
Interest Coverage ratio

Interest coverage ratio indicates the comfort with which the company may be able to service the
interest expense (i.e. finance charges) on its outstanding debt. Higher interest coverage ratio
indicates that the company can easily meet the interest expense pertaining to its debt obligations.
In our view, interest coverage ratio of below 1.5 should raise doubts about the companys ability
to meet the expenses on its borrowings. Interest coverage ratio below 1 indicates that the
company is just not generating enough to service its debt obligations.
Boschs average interest coverage ratio over the last 5 financial years has been 162.08 times
which indicates that the Company has been generating enough for the shareholders after
servicing its debt obligations.

ownership pattern
(%)
Shareholding

March 2010

March 2011

March 2012

71.18

71.18

71.18

FIIs

5.18

4.97

6.06

DIIs

14.96

13.95

12.71

8.68

9.90

10.05

Promoter

Others

In its latest stock exchange filing dated 31 March 2015, Bosch reported a promoter holding of
71.18 %. Large promoter holding indicates conviction and sincerity of the promoters. We believe
that a greater than 35 % promoter holding offers safety to the retail investors.
At the same time, institutional holding in the Company stood at 19.79 % (FII+DII). Large
institutional holding indicates the confidence of seasoned investors. At the same time, it can also
lead to high volatility in the stock price as institutions buy and sell larger stakes than retail
participants.