Please refer to important disclosures at the end of this report

1


Y/E Dec (` cr) 1QCY14 1QCY13 % chg (yoy) 4QCY13 % chg (qoq)
Net Sales 2,450 2,209 10.9 2,162 13.3
EBITDA 399 382 4.4 213 86.8
EBITDA Margin (%) 16.3 17.3 (102)bp 9.9 640bp
Adj. PAT 326 260 25.6 139 134.8
Source: Company, Angel Research
Bosch (BOS) recorded strong results for 1QCY2014 driven by
better-than-expected operating performance, and a significant increase in other
income led by treasury gains. We broadly maintain our revenue and earnings
estimates for CY2014/15 as we expect the demand environment in the
automotive sector to remain sluggish in 2QCY2014 as well. Nonetheless,
expected easing of interest rates in 2HCY2014 following expected tapering of
inflation is likely to revive demand and drive growth going ahead. We believe that
the company will continue to enjoy premium valuations and therefore maintain our
Accumulate rating on the stock.
Strong 1QFCY2014 results: BOS posted a strong top-line growth of 10.9% yoy
(13.3% qoq) to `2,450cr, sharply ahead of our estimates of `2,230cr, led by
12% yoy growth in the automotive segment. The non-automotive segment though
posted a modest growth of 4.9% yoy. The overall growth was driven by continued
momentum in exports, which witnessed a robust growth of ~35% yoy (~13% of
sales); whereas, domestic sales too posted a healthy growth of ~9% yoy driven by
strong off-take in domestic tractor sales. EBITDA margins stood at 16.3% (up
640bp qoq) as against our expectation of 15.8%. The performance improvement
was mainly on account of substantial decline in other expenditure (down
21.7% qoq) and aided by cost reduction initiatives. On a yoy basis though EBITDA
margins contracted 102bp due to the negative impact of the INR depreciation on
the raw-material cost front. Net profit grew strongly by 25.6% yoy to `326cr,
outperforming our expectations of `240cr. The bottom-line benefitted from higher
other income (up 59.3% yoy and 52.9% qoq) on account of treasury gains related
to sale of certain investments.
Outlook and valuation: We remain positive on the long term prospects of BOS due
to its technological leadership and strong and diversified product portfolio. We expect
the companys earnings growth to revive going ahead led by revival in the domestic
automotive industry coupled with localization initiatives and expected emission norm
change due to roll out in 2015. We maintain our Accumulate rating on the stock with
a target price of `11,424.
Key financials (Standalone)
Y/E Dec (` cr) CY2012 CY2013E CY2014E CY2015E
Net Sales 8,659 8,820 10,021 11,715
% chg 6.0 1.9 13.6 16.9
Net Profit 874 885 1,146 1,435
% chg (18.1) 1.2 29.5 25.3
EBITDA (%) 15.6 14.6 16.8 17.9
EPS (`) 278.3 281.7 364.8 456.9
P/E (x) 38.0 37.5 29.0 23.1
P/BV (x) 6.0 5.3 4.6 4.0
RoE (%) 15.7 14.1 15.9 17.1
RoCE (%) 18.3 14.9 18.3 20.5
EV/Sales (x) 3.3 3.2 2.7 2.3
EV/EBITDA (x) 22.5 23.0 17.3 13.5
Source: Company, Angel Research; Note: CMP as of April 28, 2014
ACCUMULATE
CMP `10,576
Target Price `11,424
Investment Period 12 Months

Stock Info
Sector
Bloomberg Code
BOS@IN
Shareholding Pattern (%)
Promoters 71.2
MF / Banks / Indian Fls 14.3
FII / NRIs / OCBs 7.5
Indian Public / Others 7.0
Abs. (%) 3m 1yr 3yr
Sensex 7.1 8.6 17.3
Bosch 16.0 17.2 56.0
10
22,632
6,761
BOSH.BO
Auto Ancillary
Avg. Daily Volume
Market Cap (` cr)
Beta
52 Week High / Low
33,209
0.2
11,500/8,000
1,606
Net Debt (` cr) (3,495)
Face Value (`)
BSE Sensex
Nifty
Reuters Code










Yaresh Kothari
022-3935 7800 Ext: 6844
yareshb.kothari@angelbroking.com
Bosch
Performance Highlights
1QCY2014 Result Update | Auto Ancillary
April 29, 2014




Bosch | 1QCY2014 Result Update

April 29, 2014

2
Exhibit 1: Quarterly financial performance (Standalone)
Y/E Dec (` cr) 1QCY14 1QCY13 % chg (yoy) 4QCY13 % chg (qoq) CY2013 CY2012 % chg (yoy)
Net Sales 2,450 2,209 10.9 2,162 13.3 8,820 8,659 1.9
Consumption of RM 840 726 15.7 705 19.2 2,860 2,851 0.3
(% of sales) 34.3 32.9

32.6

32.4 32.9

Staff costs 328 286 14.5 313 4.6 1,191 1,037 14.9
(% of sales) 13.4 13.0

14.5

13.5 12.0

Purchases of TG 506 464 9.2 448 12.9 1,922 1,908 0.8
(% of sales) 20.7 21.0

20.7

21.8 22.0

Other Expenses 378 351 7.7 482 (21.7) 1,555 1,514 2.7
(% of sales) 15.4 15.9

22.3

17.6 17.5

Total Expenditure 2,052 1,827 12.3 1,949 5.3 7,529 7,310 3.0
Operating Profit 399 382 4.4 213 86.8 1,291 1,349 (4.3)
OPM (%) 16.3 17.3

9.9 64.8 14.6 15.6

Interest 1 0 162.1 2 (69.4) 3 6 (47.6)
Depreciation 88 84 4.6 124 (29.0) 384 367 4.7
Other Income 142 89 59.3 93 52.9 353 369 (4.5)
PBT (excl. Extr. Items) 452 387 16.9 180 151.3 1,257 1,346 (6.7)
Extr. Income/(Expense) - - - - -
PBT (incl. Extr. Items) 452 387 16.9 180 151.3 1,257 1,346 (6.7)
(% of Sales) 18.5 17.5

8.3

14.2 15.5

Provision for Taxation 126 127 (0.8) 41 207.6 372 388 (4.1)
(% of PBT) 27.8 32.8

22.8

29.6 28.8

Reported PAT 326 260 25.6 139 134.8 885 958 (7.7)
Adj PAT 326 260 25.6 139 134.8 885 958 (7.7)
Adj. PATM 13.3 11.8

6.4

10.0 11.1

Equity shares (cr) 31.4 31.4

31.4

31.4 31.4

Reported EPS (`) 103.9 82.7 25.6 44.3 134.8 281.7 305.2 (7.7)
Adjusted EPS (`) 103.9 82.7 25.6 44.3 134.8 281.7 305.2 (7.7)
Source: Company, Angel Research

Exhibit 2: 1QCY2014 Actual vs Angel estimates
Y/E Dec (` cr) Actual Estimates Variation (%)
Net sales 2,450 2,230 9.9
EBITDA 399 353 12.9
EBITDA margin (%) 16.3 15.8 44bp
Adj. PAT 326 240 35.9
Source: Company, Angel Research
Top-line registers strong growth: For 1QCY2014, BOS posted a strong top-line
growth of 10.9% yoy (13.3% qoq) to `2,450cr, sharply ahead of our estimate of
`2,230cr, led by a 12% yoy growth in the automotive segment. The
non-automotive segment though posted a modest growth of 4.9% yoy during the
quarter. The overall growth was driven by continued momentum in exports, which
witnessed a robust growth of ~35% yoy (~13% of sales); whereas, domestic sales
too posted a healthy growth of ~9% yoy driven by strong off-take in domestic
tractor sales.



Bosch | 1QCY2014 Result Update

April 29, 2014

3
According to the Management, strong growth in tractor sales, market share gains
in the fuel injection systems and strong exports growth, primarily in the automotive
segment, aided the overall performance. The exports performance was aided by a
strong performance in the European region (especially in Germany) and healthy
growth in Russia and China. The localization level for the company currently stands
at ~60% (imports stand at ~40%). An improvement towards localization is
expected going ahead led by commencement of new facilities.
Exhibit 3: Segmental performance
Y/E Dec (` cr) 1QCY14 1QCY13 % chg (yoy) 4QCY13 % chg (qoq) CY2013 CY2012 % chg (yoy)
Revenue

Automotive 2,133 1,904 12.0 1,878 13.6 7,697 7,726 (0.4)
Others 321 306 4.9 294 9.4 1,136 980 16.0
Total 2,454 2,210 11.0 2,172 13.0 8,833 8,706 1.5
Less: Inter-segment revenue 4 2

10 (60.7) 13 47

Net sales 2,450 2,209 10.9 2,162 13.3 8,820 8,659 1.9
EBIT

Automotive 341 296 15.2 133 157.2 993 1,028 (3.3)
Others 35 40 (14.1) 11 229.6 55 89 (37.8)
Total EBIT 376 337 11.7 143 162.5 1,049 1,117 (6.1)
Add: Net interest income 1 0 162.1 (2) (130.6) (3) (6) (47.6)
Less: unallocable exp. (77) (50) 52.9 (39) 96.6 (211) (235) (10.4)
Total PBT 454 387 17.1 180 152.2 1,257 1,346 (6.7)
EBIT Margin (%)

Automotive 16.0 15.6 44bp 7.1 893bp 12.9 13.3 (39)bp
Others 10.8 13.2 (238)bp 3.6 722bp 4.9 9.1 (421.6)
Total 15.3 15.2

6.6

11.9 12.8

Source: Company, Angel Research

Exhibit 4: Strong growth in top-line
Source: Company, Angel Research
Exhibit 5: Segment-wise revenue trend
Source: Company, Angel Research
EBITDA margin witnesses steep recovery; beats estimates: On the operating front,
EBITDA margins improved better than our expectations and stood at 16.3% (up
640bp qoq) as against our expectations of 15.8%. The performance improvement
was mainly on account of substantial decline in other expenditure (down 21.7%
qoq) and aided by cost reduction initiatives. On a yoy basis though, EBITDA
margins contracted 102bp due to the negative impact of the INR depreciation on
2
,
2
9
5

2
,
1
7
8

2
,
0
5
4

2
,
1
3
2

2
,
2
0
9

2
,
3
0
7

2
,
1
4
7

2
,
1
6
2

2
,
4
5
0

10.0
5.8
3.1
5.1
(3.8)
5.9
4.5
1.4
10.9
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
1,800
1,900
2,000
2,100
2,200
2,300
2,400
2,500
1
Q
C
Y
1
2
2
Q
C
Y
1
2
3
Q
C
Y
1
2
4
Q
C
Y
1
2
1
Q
C
Y
1
3
2
Q
C
Y
1
3
3
Q
C
Y
1
3
4
Q
C
Y
1
3
1
Q
C
Y
1
4
(%) (` cr) Net sales Net sales growth (RHS)
2,010
1,943
1,832
1,917 1,904
2,034
1,885 1,878
2,133
275
245 231 225
306
274 264
294 321
0
500
1,000
1,500
2,000
2,500
1
Q
C
Y
1
2

2
Q
C
Y
1
2

3
Q
C
Y
1
2

4
Q
C
Y
1
2

1
Q
C
Y
1
3

2
Q
C
Y
1
3

3
Q
C
Y
1
3

4
Q
C
Y
1
3

1
Q
C
Y
1
4

(` cr) Automotive revenue Other revenue



Bosch | 1QCY2014 Result Update

April 29, 2014

4
raw-material expenses. Operating profit at `399cr, up 4.4%, is ahead of our
expectation of `353cr. EBIT margins in the automotive segment expanded by 44bp
yoy (steep 893bp qoq) to 16%; while the non-auto segment reported a 238bp yoy
decline in EBIT margins to 10.8%.
Net profit grew strongly by 25.6% yoy to `326cr, significantly beating our
expectation of `240cr. The bottom-line benefitted from higher other income (up
59.3% yoy and 52.9% qoq) on account of treasury gains related to sale of certain
investments.
The company intends to incur capital expenditure of `600cr, a majority of which
would be towards the new plant in Bidadi and the rest towards construction of two
new buildings at the existing facility in Bangalore. According to the Management,
negotiations with workers at the Nashik plant are at an advanced stage and an
agreement is expected to be finalized in the coming weeks.
Exhibit 6: EBITDA margin beats estimates...
Source: Company, Angel Research
Exhibit 7: ... leading to a beat on the bottom-line
Source: Company, Angel Research



20.8
15.1
13.3
12.5
17.3
15.7 15.2
9.9
16.3
54.7
57.3 57.7
53.8 54.2
56.4
54.7
55.9 55.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
1
Q
C
Y
1
2
2
Q
C
Y
1
2
3
Q
C
Y
1
2
4
Q
C
Y
1
2
1
Q
C
Y
1
3
2
Q
C
Y
1
3
3
Q
C
Y
1
3
4
Q
C
Y
1
3
1
Q
C
Y
1
4
(%) EBITDA margins Raw material cost/sales
3
3
6

2
4
7

2
0
3

1
7
2

2
6
0

2
5
2

2
3
4

1
3
9

3
2
6

14.6
11.4
9.9
8.1
11.8
10.9 10.9
6.4
13.3
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
0
50
100
150
200
250
300
350
400
1
Q
C
Y
1
2
2
Q
C
Y
1
2
3
Q
C
Y
1
2
4
Q
C
Y
1
2
1
Q
C
Y
1
3
2
Q
C
Y
1
3
3
Q
C
Y
1
3
4
Q
C
Y
1
3
1
Q
C
Y
1
4
(%) (` cr) Net profit Net profit margin (RHS)



Bosch | 1QCY2014 Result Update

April 29, 2014

5
Investment arguments
Technology intensive industry supplemented by high bargaining power: The
company enjoys high margins in the auto component segment due to strong
entry barriers and its dominant position in the market. Nonetheless, due to
decline in utilization levels (~70-75% across plants) and sharp INR
depreciation, the company has witnessed a steep 390bp contraction in
operating margins over the last two years. While the demand in the
automotive space is expected to remain muted in the near term, we expect the
demand environment to improve in 2HCY2014, which will improve utilization
levels and thus the margins. As a result, we estimate BOS to post a ~15%
CAGR in its top-line over CY2013-15E. Additionally, the benefits of ongoing
cost reduction initiatives coupled with expected improvement in utilization
levels are likely to lead to recovery in margins over the next two years. We
therefore expect the bottom-line to grow at a robust CAGR of ~27% over
CY2013-15E.
Dependent on favorable CV cycle for growth: BOS's prospects are largely
derived from demand arising in the commercial vehicle (CV) and tractor
segments. While the slowdown in the CV segment is expected to continue in
the near term, the tractor segment has witnessed a strong revival following
better monsoon and expectations of better kharif crop. We expect the CV cycle
to reverse in 2HFY2015 which is expected to revive companys revenue and
earnings growth. Further, greater visibility on newer growth opportunities is
emerging for the company, following its investments in new and innovative
technologies such as CRS and gasoline systems.

Outlook and valuation
We broadly maintain our revenue and earnings estimates for CY2014/15 as we
expect the demand environment in the automotive sector to remain sluggish in the
near term. Nonetheless, expected easing of interest rates in 2HCY2014 following
expected tapering of inflation is likely to revive demand and drive growth going
ahead.
Exhibit 8: Change in estimates
Y/E December Earlier Estimates Revised Estimates % chg

CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E
Total income (` cr) 10,074 11,708 10,021 11,715 (0.5) 0.1
OPM (%) 17.0 18.0 16.8 17.9 (24)bp (13)bp
EPS (`) 369.0 448.6 364.8 456.9 (1.1) 1.9
Source: Company, Angel Research
We remain positive on the long term prospects of BOS due to its technological
leadership and strong and diversified product portfolio. We expect the companys
earnings growth to revive going ahead led by revival in the domestic automotive
industry coupled with localization initiatives and expected emission norm changes
due to roll out in 2015. At, `10,576 the stock is trading at 23.1x CY2015E
earnings. We believe that BOS will continue to enjoy premium valuations and
maintain our Accumulate rating on the stock with a target price of `11,424.



Bosch | 1QCY2014 Result Update

April 29, 2014

6
Exhibit 9: Key assumptions
Volumes (mn units) CY10 CY11 CY12E CY13E CY14E CY15E
Fuel injection pumps 3.7 4.4 4.0 4.0 4.4 4.9
Nozzles 21.5 23.0 22.2 23.3 24.4 29.4
Auto electrical 1.5 2.0 2.4 2.4 2.5 2.7
Source: Company, Angel Research

Exhibit 10: Angel vs consensus forecast
Y/E Dec. (` cr) Angel estimates Consensus Variation (%)

CY14E CY15E CY14E CY15E CY14E CY15E
Total op. income 10,021 11,715 9,874 11,796 1.5 (0.7)
Net profit 1,146 1,435 1,093 1,382 4.8 3.8
Source: Company, Angel Research

Exhibit 11: One-year forward P/E band
Source: Company, Angel Research
Exhibit 12: Premium/ Discount to Sensex
Source: Company, Angel Research


0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
J
a
n
-
0
3
F
e
b
-
0
4
A
p
r
-
0
5
M
a
y
-
0
6
J
u
l
-
0
7
A
u
g
-
0
8
O
c
t
-
0
9
N
o
v
-
1
0
J
a
n
-
1
2
F
e
b
-
1
3
A
p
r
-
1
4
(`) Share price (`) 15x 20x 25x 30x
(100)
(50)
0
50
100
150
200
A
p
r
-
0
2
M
a
y
-
0
3
J
u
n
-
0
4
J
u
l
-
0
5
A
u
g
-
0
6
S
e
p
-
0
7
O
c
t
-
0
8
N
o
v
-
0
9
J
a
n
-
1
1
F
e
b
-
1
2
M
a
r
-
1
3
A
p
r
-
1
4
(%) Absolute premium Five-yr average premium



Bosch | 1QCY2014 Result Update

April 29, 2014

7
Exhibit 13: Auto Ancillary Recommendation summary
Company Reco.
CMP
(`)
Tgt. price
(`)
Upside
(%)
P/E (x) EV/EBITDA (x) RoE (%) FY13-16E EPS
FY15E FY16E FY15E FY16E FY15E FY16E CAGR (%)
Amara Raja Batteries Accumulate 403 440 9.3 16.4 14.8 10.0 8.5 26.8 23.8 16.3
Automotive Axle
^
Neutral 361 - - 24.4 13.6 8.3 5.8 7.7 12.9 (3.6)
Bharat Forge* Buy 413 485 17.6 19.2 15.4 8.5 7.1 18.5 20.0 51.0
Bosch India
#
Accumulate 10,576 11,424 8.0 29.0 23.1 17.3 13.5 15.9 17.1 18.0
Exide Industries Accumulate 125 134 6.5 19.2 16.6 9.2 7.8 14.0 14.5 7.0
FAG Bearings
#
Neutral 2,110 - - 21.8 16.1 13.0 9.3 15.1 17.6 11.0
Motherson Sumi* Accumulate 266 299 12.4 19.8 15.1 7.4 5.9 32.1 32.0 36.7
Subros Accumulate 28 32 12.4 8.5 5.3 3.5 3.0 6.7 10.0 15.8
Source: Company, Angel Research; Note: * Consolidated results;
#
December year end;
^
September year end
Company background
Bosch, promoted by Robert Bosch GmbH, is the largest auto ancillary company in
India and a dominant player in the fuel injection segment with ~75% market
share. The company has a diverse product portfolio of diesel and gasoline fuel
injection systems, automotive aftermarket products, auto electricals, special
purpose machines, packaging machines, electric power tools and security systems.
The automotive segment contributes 90% to BOS' total revenue. The company also
has one of the largest distribution networks of spare parts in the country, with
after-market component sales accounting for ~20% of revenue. BOS has
five manufacturing facilities located at Bangalore, Nasik, Naganathpura,
Jaipur and Goa.



Bosch | 1QCY2014 Result Update

April 29, 2014

8
Profit and loss statement (Standalone)
Y/E Dec. (` cr) CY10 CY11 CY12 CY13E CY14E CY15E
Total operating income 6,882 8,166 8,659 8,820 10,021 11,715
% chg 37.8 18.7 6.0 1.9 13.6 16.9
Total expenditure 5,629 6,654 7,310 7,529 8,338 9,618
Net raw material costs 3,598 4,444 4,783 4,782 5,402 6,263
Other mfg costs 432 445 460 495 540 632
Employee expenses 796 896 1,037 1,191 1,277 1,436
Other 803 870 1,030 1,061 1,120 1,287
EBITDA 1,253 1,512 1,350 1,291 1,683 2,098
% chg 54.1 20.6 (10.7) (4.3) 30.4 24.6
(% of total op. income) 18.2 18.5 15.6 14.6 16.8 17.9
Depreciation & amortization 254 258 367 384 432 478
EBIT 999 1,254 983 907 1,252 1,619
% chg 96.0 25.5 (21.7) (7.7) 38.0 29.3
(% of total op. income) 15.0 15.7 11.5 10.5 12.7 14.1
Interest and other charges 4 0 6 3 3 4
Other income 7 320 369 353 388 434
PBT (recurring) 1,002 1,574 1,346 1,257 1,636 2,050
% chg 26.3 57.0 (14.5) (6.7) 30.2 25.3
Extraordinary exp./ (income) - 56 84 - - -
PBT (reported) 1,002 1,518 1,262 1,257 1,636 2,050
Tax 344 451 388 372 491 615
(% of PBT) 34.3 29.7 30.7 29.6 30.0 30.0
PAT (reported) 659 1,123 958 885 1,146 1,435
ADJ. PAT 658 1,067 874 885 1,146 1,435
% chg 25.0 62.1 (18.1) 1.2 29.5 25.3
(% of total op. income) 9.8 13.3 10.3 10.2 11.7 12.5
Basic EPS (`) 209.7 357.5 305.2 281.7 364.8 456.9
Adj. EPS (`) 209.6 339.7 278.3 281.7 364.8 456.9
% chg 25.0 62.1 (18.1) 1.2 29.5 25.3





Bosch | 1QCY2014 Result Update

April 29, 2014

9
Balance sheet statement (Standalone)
Y/E Dec. (` cr) CY10 CY11 CY12 CY13E CY14E CY15E
SOURCES OF FUNDS
Equity share capital 31 31 31 31 31 31
Reserves & surplus 4,067 4,697 5,542 6,226 7,152 8,368
Shareholders Funds 4,098 4,728 5,573 6,257 7,184 8,399
Total loans 276 245 185 132 132 132
Deferred tax liability (218) (228) (255) (299) (299) (299)
Other long term liabilities - 37 33 39 39 39
Long term provisions - 172 218 252 252 252
Total Liabilities 4,156 4,955 5,755 6,381 7,307 8,523
APPLICATION OF FUNDS

Gross block 3,017 3,352 3,935 4,409 4,954 5,492
Less: Acc. depreciation 2,588 2,767 3,078 3,462 3,894 4,372
Net Block 430 585 857 947 1,060 1,120
Capital work-in-progress 224 321 417 442 496 550
Goodwill 6 6 6 6 6 6
Investments 1,607 1,635 1,520 2,185 2,502 2,919
Long term loans & advances - 333 226 226 226 226
Current assets 3,752 4,024 4,623 4,780 5,423 6,301
Cash 1,326 952 1,487 1,441 1,749 2,006
Loans & advances 896 993 1,019 1,057 1,179 1,379
Other 1,530 2,079 2,117 2,281 2,496 2,916
Current liabilities 1,863 1,948 1,894 2,204 2,406 2,598
Net current assets 1,889 2,075 2,729 2,575 3,017 3,703
Total Assets 4,156 4,955 5,755 6,381 7,307 8,523
Note: Cash includes term deposits with banks with maturity of more than 3 months but less than 12
months




Bosch | 1QCY2014 Result Update

April 29, 2014

10
Cash flow statement (Standalone)
Y/E Dec. (` cr) CY10 CY11 CY12 CY13E CY14E CY15E
Profit before tax 1,002 1,518 1,262 1,257 1,636 2,050
Depreciation 254 258 367 384 432 478
Change in working capital (14) (561) (41) 103 (134) (429)
Others (5) 1 149 - - -
Other income (7) (320) (369) (353) (388) (434)
Direct taxes paid (344) (451) (388) (372) (491) (615)
Cash Flow from Operations 886 445 981 1,019 1,055 1,050
(Inc.)/Dec. in fixed assets (277) (431) (679) (499) (599) (592)
(Inc.)/Dec. in investments (190) (27) 115 (665) (317) (416)
Other income 7 320 369 353 388 434
Cash Flow from Investing (460) (138) (195) (811) (528) (574)
Issue of equity - - - - - -
Inc./(Dec.) in loans (8) (31) (60) (53) - -
Dividend paid (Incl. Tax) 110 493 157 201 219 219
Others (270) (552) (314) - - -
Cash Flow from Financing (168) (91) (217) (254) (219) (219)
Inc./(Dec.) in cash 258 216 (109) (46) 307 257
Opening Cash balances 1,068 74 290 1,487 1,441 1,749
Closing Cash balances 1,326 290 181 1,441 1,749 2,006
Note: Closing cash balance excludes term deposits with banks with maturity of more than 3 months
but less than 12 months




Bosch | 1QCY2014 Result Update

April 29, 2014

11
Key ratios
Y/E Dec. CY10 CY11 CY12 CY13E CY14E CY15E
Valuation Ratio (x)

P/E (on FDEPS) 38.7 31.1 38.0 37.5 29.0 23.1
P/CEPS 29.9 25.1 26.8 26.2 21.1 17.4
P/BV 8.1 7.0 6.0 5.3 4.6 4.0
Dividend yield (%) 0.4 1.3 0.6 0.5 0.6 0.6
EV/Sales 4.3 3.6 3.3 3.2 2.7 2.3
EV/EBITDA 24.4 20.4 22.5 23.0 17.3 13.5
EV / Total Assets 7.4 6.2 5.3 4.7 4.0 3.3
Per Share Data (`)

EPS (Basic) 273.4 339.7 278.3 281.7 364.8 456.9
EPS (fully diluted) 209.6 339.7 278.3 281.7 364.8 456.9
Cash EPS 354.3 421.8 395.2 404.1 502.3 609.3
DPS 40.0 135.0 60.0 55.0 60.0 60.0
Book Value 1,305 1,506 1,775 1,993 2,288 2,675
Dupont Analysis

EBIT margin 15.0 15.7 11.5 10.5 12.7 14.1
Tax retention ratio 0.7 0.7 0.7 0.7 0.7 0.7
Asset turnover (x) 2.6 2.4 2.1 1.9 1.9 1.9
ROIC (Post-tax) 25.9 26.3 16.7 14.2 17.0 19.1
Cost of Debt (Post Tax) 0.9 0.1 1.8 1.3 1.7 2.0
Leverage (x) (0.6) (0.6) (0.5) (0.5) (0.6) (0.6)
Operating ROE 9.7 11.5 9.2 7.3 8.4 9.4
Returns (%)

ROCE (Pre-tax) 26.2 27.5 18.3 14.9 18.3 20.5
Angel ROIC (Pre-tax) 35.3 31.3 23.0 18.4 22.5 24.8
ROE 16.1 22.6 15.7 14.1 15.9 17.1
Turnover ratios (x)

Asset Turnover (Gross Block) 2.3 2.6 2.4 2.1 2.1 2.2
Inventory / Sales (days) 37 45 49 49 50 50
Receivables (days) 36 37 41 44 43 43
Payables (days) 60 66 59 73 71 67
WC cycle (ex-cash) (days) 25 38 50 49 44 46
Solvency ratios (x)

Net debt to equity (0.6) (0.5) (0.5) (0.6) (0.6) (0.6)
Net debt to EBITDA (2.1) (1.5) (2.1) (2.7) (2.4) (2.3)
Interest Coverage (EBIT / Int.) 254.3 3,135.3 178.6 313.8 381.1 421.3






Bosch | 1QCY2014 Result Update

April 29, 2014

12




Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com

DISCLAIMER

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking
or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or
in the past.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.


Disclosure of Interest Statement Bosch
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Reduce (-5% to -15%) Sell (< -15%)

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors