Bosch reports Rs 200 crore loss in Q1, to shelve 1,000 jobs

 Automotive components maker Bosch swung to a loss of Rs 200 crore in the first quarter compared to a profit of Rs 280 crore a year earlier as the pandemic impacted severely an already ailing auto industry.

Revenue from operations was down 64% to Rs 991 crore. The loss was exacerbated by a one-time provision of Rs 197 crore for restructuring, reskilling and other transformational projects.

“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, we now have to do all we can to counter the business situation while exhibiting utmost care for our associates,” said Soumitra Bhattacharya, managing director of Bosch.

The restructuring will impact about 1,000 jobs, mostly blue collared, which the company claims is part of its effort to realign with the changing dynamics of the auto industry.

“In response to the anticipated burdens as a result of the challenging situation, Bosch is taking measures to manage resources and costs. Agility and operational efficiencies will help optimise its core business. To secure liquidity, extensive programmes to adjust manufacturing capacity and cost structures are in place,” the company added.

The powertrain solutions business reported a drop in revenue of 78%. However, the two-wheeler and powersports product unit saw double-digit growth. Bhattacharya added that the auto market was down 70% in the first quarter with the heaviest impact on the heavy commercial vehicles and passenger cars. The tractor and two-wheeler market performed better.