Automotive parts maker Robert Bosch GmbH experienced a loss of Rs 200 crore ($26.7 million) in the first quarter compared to a profit of Rs 280 crore ($37.4 million) a year ago as the coronavirus crisis impacted the auto industry.
Revenue from operations dropped 64% to Rs 991 crore ($132 million). The loss was aggravated by a one-time provision of Rs 197 crore ($26.3 million) for restructuring, reskilling, and other transformational tasks.
“Multiple lockdowns in several states are adversely affecting the supply chain. With the ripple effect of this continuing to be felt in the coming times, 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 in India.
The restructuring will impact about 1,000 jobs, mainly blue collared, which the company claims is part of its attempts to realign with the changing dynamics of the 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 optimize its core business. To secure liquidity, extensive programmes to adjust manufacturing capacity and cost structures are in place,” the company said.
The powertrain solutions business reported a decline in revenue of 78%. However, the two-wheeler and powersports product unit saw double-digit growth. Bhattacharya said that the auto market dropped 70% in the first quarter with the heaviest impact on the heavy commercial vehicles and passenger cars. Nonetheless, the tractor and two-wheeler market performed better.