2QCY2012 Result Update | Auto Ancillary

August 16, 2012

Bosch
Performance Highlights
Y/E Dec (` cr) Net Sales EBITDA EBITDA Margin (%) Adj. PAT 2QCY12 2,174 329 15.1 247 2QCY11 2,060 379 18.4 279 % chg (yoy) 5.6 (13.2) (327)bp (11.3) 1QCY12 2,295 478 20.8 336 % chg (qoq) (5.3) (31.1) (567)bp (26.3)

NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Auto Ancillary 27,260 (1,857) 0.3 9,300/6,425 1,288 10 17,657 5,363 BOSH.BO BOS@IN

`8,681 -

Source: Company, Angel Research

Bosch (BOS) reported lower-than-expected results for 2QCY2012 primarily due to raw-material cost pressures and a sharp increase in other expenditure which led to a 327bp yoy (567bp qoq) contraction in the operating margin. While rawmaterial cost pressures were on account of INR depreciation; other expenditure increased led by inflationary pressures and one time tooling cost of `20cr. We have revised downwards our earnings estimates to factor in the slowdown in the automotive sector and weak exports demand coupled with margin pressure due to unfavorable currency movement. We maintain our Neutral rating on the stock. Margin pressures impact operating performance: For 2QCY2012, BOS reported a slightly lower-than-expected top-line growth of 5.6% yoy (down 5.3% mom) to `2,174cr due to sluggish growth in the commercial vehicle (CV) and tractor industry sales. The automotive segment revenues grew by a modest 5.1% yoy (down 4.4% qoq) due to flat growth in the diesel systems segment and 12% yoy decline in exports revenue. On the other hand, the non-auto segment posted a strong growth of 19.9% yoy (down 11.2% qoq) during the quarter. The EBITDA margin fell sharply by 327bp yoy (567bp qoq) to 15.1%, primarily on account of increase in raw-material expenses led by INR depreciation (~100bp impact on the margins). Further, other expenditure too increased by 200bp yoy (280bp qoq) on account of inflationary pressures and one time tooling cost of `20cr (~100bp impact on EBITDA margin). Hence, the net profit posted a lower-than-expected bottom-line of `247cr, witnessing a decline of 11.3% yoy (26.3% qoq). Outlook and valuation: While we are positive on the long term prospects of BOS due to its technological leadership and strong and diversified product portfolio; we expect the near-term environment to remain challenging for the company given the slowdown in the CV and tractor industry. At `8,681, BOS is fairly valued at 19.9x CY2013E earnings. Thus, we maintain our Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 71.2 15.0 6.4 7.4

Abs. (%) Sensex Bosch

3m 10.2 (2.2)

1yr 5.5

3yr 14.6

19.3 122.0

Key financials (Standalone)

Y/E Dec (` cr) Net Sales % chg Net Profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

CY2010 6,882 37.8 858 63.0 18.2 273.4 31.8 6.7 20.9 26.2 3.5 23.4

CY2011 8,141 18.3 1,066 24.2 18.3 339.6 25.6 5.8 22.6 27.6 2.9 16.7

CY2012E 9,034 11.0 1,173 10.0 17.8 373.6 23.2 4.8 20.5 24.3 2.5 15.1

CY2013E 10,286 13.8 1,368 16.6 18.3 435.8 19.9 4.0 19.8 23.9 2.2 12.4

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Bosch | 2QCY2012 Result Update

Exhibit 1: Quarterly financial performance (Standalone)

Y/E Dec (` cr) Net Sales Consumption of RM (% of sales) Staff costs (% of sales) Purchases of TG (% of sales) Other Expenses (% of sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT Adj PAT Adj. PATM Equity capital (cr) Reported EPS (`) Adjusted EPS (`)
Source: Company, Angel Research

2QCY12 2,174 743 34.2 248 11.4 495 22.8 359 16.5 1,845 329 15.1 76 89 342 342 15.7 94 27.6 247 247 11.4 31.4 78.8 78.8

2QCY11 2,060 564 27.4 236 11.4 582 28.3 299 14.5 1,681 379 18.4 50 72 401 401 19.5 122 30.5 279 279 13.5 31.4 88.8 88.8

% chg (yoy) 5.6 31.7 5.1 (14.9) 20.2 9.8 (13.2) 52.3 23.1 (14.8) (14.8) (22.9) (11.3) (11.3)

1QCY12 2,295 728 31.7 249 10.9 526 22.9 315 13.7 1,818 478 20.8 64 67 480 480 20.9 144 30.1 336 336 14.6 31.4

% chg (qoq) (5.3) 2.0 (0.6) (5.8) 14.2 1.5 (31.1) (27.3) 18.7 33.3 (28.8) (28.8) (34.6) (26.3) (26.3)

1HCY12 4,469 1,471 32.9 497 11.1 1,021 22.8 674 15.1 3,662 807 18.0 140 156 822 822 18.4 239 29.1 583 583 13.1 31.4

1HCY11 4,145 1,310 31.6 451 10.9 1,011 24.4 600 14.5 3,372 773 18.6 (46) 97 84 805 805 19.4 252 31.3 553 553 13.3 31.4 176.2 176.2

% chg (yoy) 7.8 12.3 10.0 1.0 12.4 8.6 4.3 44.1 86.3 2.1 2.1 (5.3) 5.4 5.4

(11.3) (11.3)

106.9 106.9

(26.3) (26.3)

185.8 185.8

5.4 5.4

Exhibit 2: 2QCY2012 Actual vs. Angel estimates

Y/E Dec (` cr) Net sales EBITDA EBITDA margin (%) Adj. PAT
Source: Company, Angel Research

Actual 2,174 329 15.1 247

Estimates 2,236 449 20.1 316

Variation (%) (2.8) (26.8) (495)bp (21.6)

Top-line up 5.6% yoy: For 2QCY2012 BOS posted a subdued growth of 5.6% yoy (down 5.3% qoq) in its top-line to `2,174cr, marginally lower-than-estimates, on account of sluggish CV and tractor sales. The automotive segment revenues grew by a modest 5.1% yoy (down 4.4% qoq) due to the flat growth in the diesel systems segment and 12% yoy decline in exports revenue. However, the automotive & electrical and power tools segments witnessed a strong growth of 40% and 20% yoy respectively. On the other hand, the non-auto segment posted a strong growth of 19.9% yoy (down 11.2% qoq) during the quarter.

August 16, 2012

Bosch | 2QCY2012 Result Update

Exhibit 3: Segmental performance

Y/E Dec (` cr) Revenue Automotive Others Total Less: Inter-segment revenue Net sales EBIT Automotive Others Total EBIT Add: Net interest income Less: Unallocable exp. Total PBT EBIT Margin (%) Automotive Others Total
Source: Company, Angel Research

2QCY12 1,922 244 2,166 9 2,157 276 8 284 (58) 342 14.3 3.2 13.1

2QCY11 1,828 204 2,032 13 2,018 335 21 355 (46) 401 18.3 10.2 17.5

% chg 5.1 19.9 6.6 6.9 (17.6) (61.7) (20.2) 26.8 (14.8)

1QCY12 2,010 275 2,285 18 2,268 423 27 450 (30) 480 21.1 9.8 19.7

% chg (4.4) (11.2) (5.2) (47.7) (4.9) (34.8) (70.7) (37.0) 94.4 (28.8)

1HCY12 3,932 520 4,452 27 4,425 699 35 734 (88) 822 17.8 6.7 16.5

1HCY11 3,673 431 4,104 18 4,086 684 42 726 46 (33) 805 18.6 9.7 17.7

% chg 7.1 20.7 8.5 8.3 2.1 (16.0) 1.1 164.5 2.1

Exhibit 4: Sluggish growth in top-line

(` cr) 2,500 2,000 1,500 1,000 500 8.3 0 1,700 1,711 36.3 31.9 1,884 29.5 Net sales Net sales growth (RHS) 2,295 2,174 2,086 2,060 1,991 2,040 30.7 21.1 16.4 10.0 5.6 (%) 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

Exhibit 5: Segment-wise revenue trend

(` cr) 2,500 2,000 1,502 1,500 1,000 500 0 157 160 164 227 204 211 206 275 244 1,845 1,551 1,614 1,828 1,784 2,010 1,774 1,922 Automotive revenue Other revenue

2QCY10

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY10

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

Source: Company, Angel Research

2QCY12

Source: Company, Angel Research

EBITDA margin declines sharply to 15.1%: BOS registered a sharp drop in its EBITDA margin to 15.1%, down 327bp yoy (567bp qoq) and significantly lower than our estimates of 20.1%. The sharp fall in the EBITDA margin was on account of increase in raw-material expenses led by INR depreciation and higher other expenditure. Raw-material expenses as a percentage of sales grew 130bp yoy (232bp qoq) mainly on account of INR depreciation which impacted the margins by ~100bp. Other expenditure as a percentage of sales too expanded by 200bp yoy (280bp qoq) due to inflationary pressures and one time tooling cost of `20cr (~100bp impact on EBITDA margin). Thus, the operating profit declined sharply by 13.2% yoy (31.1% qoq) to `329cr.

August 16, 2012

2QCY12

Bosch | 2QCY2012 Result Update

Exhibit 6: EBITDA margin declines sharply to 15.1%

(%) 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 18.8 19.8 16.4 18.9 18.4 19.3 17.5 20.8 15.1 53.5 53.4 53.7 56.7 56.8 54.4 53.7 55.3 57.4 EBITDA margins Raw material cost/sales

Exhibit 7: Net profit down 11.3% yoy

(` cr) 400 350 300 250 200 150 100 50 0 210 236 211 274 279 288 281 336 247 12.3 Net profit 13.8 11.2 13.2 13.5 Net profit margin (RHS) 14.5 14.6 13.8 11.4 (%) 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

2QCY10

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY10

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

Source: Company, Angel Research

2QCY12

Source: Company, Angel Research

Weak operating performance impacts bottom-line: The companys net profit registered a decline of 11.3% yoy (26.3% qoq) to `247cr which was 21.6% lower than our estimates, primarily due to a weak performance at the operating level. However, a lower tax-rate (at 27.6% vs 30.5% in 2QCY2011) benefitted the bottom-line to a certain extent during the quarter.

Conference call Key highlights

The management expects the automotive industry to register a relatively better performance in 2HFY2013. The CV and tractor industry witnessed sluggish sales during the quarter; however, light commercial and passenger vehicles recorded a healthy growth. Exports (contribute by 10-12% of the top-line) during the quarter declined 12% yoy due to weak demand in Europe and the US. While exports to Europe account for ~60% of the total export revenue, the remaining ~40% is derived from the US and Asia. The company now intends to incur capital expenditure of `400cr-`500cr in CY2012 which has been scaled down from the earlier levels of ~`600cr. The contribution of the diesel systems segment to sales is ~60%, automotive after-market contributes ~20%, automotive electrical constitutes ~10% and power tools/ starters and generators and gasoline contribute ~10%. Localization levels in CRDI systems are currently at 50%. The management expects to gradually improve localization going ahead.

August 16, 2012

2QCY12

Bosch | 2QCY2012 Result Update

Investment arguments
Technology-intensive industry supplemented by high bargaining power: We estimate BOS to post a ~13% CAGR in its top-line and bottom-line over CY2011-13E. The company enjoys high margins in the auto component segment due to high entry barriers and its dominant position in the market. Nonetheless, due to a decline in utilization levels (~70-75% across plants) and INR depreciation, we expect margins to remain under pressure in 2HCY2012. However, localization initiatives will benefit margins in the long run. Dependent on favorable CV cycle for growth: BOS' prospects are largely derived from demand arising in the CV and tractor segments, which are estimated to post a CAGR of 8-10% over the next couple of years. 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. We believe the company will continue to enjoy premium valuations, owing to strong parental focus and increasing long-term growth opportunities in the Indian market, facilitated by changes in emission norms. Moreover, BOS has been a consistent performer with strong cash flows in the Indian auto component industry.

Outlook and valuation

Going ahead, the company is expected to report modest results in 3QCY2012 as well, as the slowdown in the domestic CV (mainly the medium and heavy commercial vehicle segment) and tractor segments, along with sluggish exports will negatively impact the companys performance. BOS has also been suspending operations temporarily at its plants (Bangalore, Nashik and Jaipur) since June 2012 in a phased manner to align production in-line with the market demand. We have revised downwards our sales and earnings estimates for BOS to factor in the slowdown in the automotive sector and weak exports demand coupled with margin pressure due to unfavorable currency movement.

Exhibit 8: Change in estimates

Y/E December Total income (` cr) OPM (%) EPS (`) Earlier Estimates CY2012E 9,106 19.3 1,288 CY2013E 10,255 19.3 1,445 Revised Estimates CY2012E 9,034 17.8 1,173 CY2013E 10,286 18.3 1,368 % chg CY2012E (0.8) (147.8) (8.9) CY2013E 0.3 (97.0) (5.3)

Source: Company, Angel Research

While we are positive on the long term prospects of BOS due to its technological leadership and strong and diversified product portfolio; we expect the near-term environment to remain challenging for the company given the slowdown in the CV and tractor industry. We expect BOS to register a ~13% CAGR each in its net sales and net profit over CY2011-13E. As a result, we estimate BOS to post an EPS of `373.6 and `435.8 for CY2012E and CY2013E respectively. At `8,681, BOS is fairly valued at 19.9x CY2013E earnings. Thus, we maintain our Neutral rating on the stock.

August 16, 2012

Bosch | 2QCY2012 Result Update

Exhibit 9: Key assumptions

Volumes (mn units) Fuel injection pumps Nozzles Auto electrical
Source: Company, Angel Research

CY08 2.9 16.2 1.5

CY09 2.7 16.3 1.4

CY10 3.7 21.5 1.5

CY11 4.4 23.0 2.0

CY12E 4.5 24.3 2.4

CY13E 4.9 27.0 2.6

Exhibit 10: Angel vs consensus forecast

Angel estimates CY12E Total op. income (` cr) EPS (`) 9,034 373.6 CY13E 10,286 435.8 Consensus CY12E 8,930 375.7 CY13E 10,346 447.6 Variation (%) CY12E 1.2 (0.5) CY13E (0.6) (2.6)

Source: Company, Angel Research

Exhibit 11: One-year forward P/E band

(`) 12,000 10,000 8,000 6,000 4,000 2,000 0 Share price (`) 12x 16x 20x 24x

Exhibit 12: One-year forward P/E chart

(x) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 One-yr forward P/E Five-yr average P/E

Aug-05

Dec-09

Jan-03

Jun-06

Nov-03

Mar-08

Nov-10

May-07

Aug-12

0.0

Feb-09

Sep-04

Sep-11

Feb-09

May-07

Aug-05

Dec-09

Sep-11

Jun-06

Mar-08

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 13: Premium/Discount to Sensex

(%) 100 80 60 40 20 0 (20) (40) (60) (80) Absolute premium Five-yr average premium

Exhibit 14: Bosch vs Sensex

600 500 400 300 200 100 Bosch India Sensex

Feb-04

Sep-10

Dec-06

Sep-11

Jan-05

Jan-06

Mar-03

Nov-07

Nov-08

Aug-12

Apr-02

Oct-09

Feb-09

Sep-05

May-06

Jan-05

Jan-07

Jun-08

Jul-10

Nov-10

Nov-09

Mar-11

Source: Company, Angel Research

Source: Company, Angel Research

August 16, 2012

Nov-11

Aug-12

Oct-07

Aug-12

Bosch | 2QCY2012 Result Update

Exhibit 15: Auto Ancillary Recommendation summary

Company Amara Raja Batteries Automotive Axle^ Bharat Forge* Bosch India
#

Reco. Accumulate Buy Buy Neutral Accumulate Neutral Buy Buy

#

CMP (`) 382 343 299 8,681 133 1,600 172 29

Tgt. price (`) 402 430 351 149 216 34

Upside (%) 5.2 25.1 17.2 12.2 25.6 19.3

P/E (x) FY13E FY14E 12.1 9.3 14.7 23.2 18.0 14.4 12.9 6.3 10.5 8.0 11.9 19.9 14.5 12.3 9.6 5.0

EV/EBITDA (x) FY13E 7.0 4.9 7.3 15.1 9.9 8.5 5.9 4.4 FY14E 5.9 3.8 6.1 12.4 7.7 6.8 4.6 3.9

RoE (%) FY13E 28.8 21.2 19.9 20.5 19.0 22.8 26.2 9.8 FY14E 26.2 21.2 20.9 19.8 20.2 21.7 28.4 11.8

FY12-14E EPS CAGR (%) 20.5 6.2 19.3 13.3 29.7 10.8 54.6 6.4

Exide Industries FAG Bearings Subros Motherson Sumi*

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.

August 16, 2012

Bosch | 2QCY2012 Result Update

Profit and loss statement (Standalone)

Y/E Dec (` cr) Total operating income % chg Total expenditure Net raw material costs Other mfg costs Employee expenses Other EBITDA % chg (% of total op. income) Depreciation & amortization EBIT % chg (% of total op. income) Interest and other charges Other income PBT (recurring) % chg Extraordinary expense/ (income) PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of total op. income) Basic EPS (`) Adj. EPS (`) % chg CY08 4,745 6.1 3,888 2,416 377 530 566 857 (7.1) 18.1 302 554 (17.0) 12.0 9 311 857 0.1 81 776 223 28.7 634 553 (1.9) 12.0 198.0 172.7 (1.8) CY09 4,996 5.3 4,183 2,551 360 609 663 813 (5.1) 16.3 304 510 (8.0) 10.6 1 285 793 (7.4) 64 729 203 27.8 591 527 (4.7) 11.0 188.1 167.7 (2.9) CY10 6,882 37.8 5,629 3,598 432 796 803 1,253 54.1 18.2 254 999 96.0 15.0 4 207 1,203 51.6 1,202 344 28.6 859 858 63.0 12.8 273.5 273.4 63.0 CY11 8,141 18.3 6,647 4,444 467 888 848 1,494 19.2 18.3 258 1,236 23.7 15.5 0 338 1,574 30.9 56 1,518 451 29.7 1,123 1,066 24.2 13.3 357.5 339.6 24.2 CY12E 9,034 11.0 7,424 4,967 523 993 940 1,610 7.8 17.8 324 1,286 4.1 14.5 0 366 1,652 5.0 1,652 479 29.0 1,173 1,173 10.0 13.2 373.6 373.6 10.0 CY13E 10,286 13.8 8,400 5,618 594 1,132 1,056 1,885 17.1 18.3 361 1,525 18.5 15.1 1 403 1,927 16.6 1,927 559 29.0 1,368 1,368 16.6 13.5 435.8 435.8 16.6

August 16, 2012

Bosch | 2QCY2012 Result Update

Balance sheet statement (Standalone)

Y/E Dec (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders Funds Total loans Deferred tax liability Total Liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-progress Goodwill Investments Current assets Cash Loans & advances Other Current liabilities Net current assets Total Assets 2,722 2,120 602 167 6 867 2,741 1,071 422 1,248 1,193 1,548 3,190 2,865 2,358 507 100 6 1,418 2,758 1,068 556 1,135 1,320 1,438 3,468 3,017 2,588 430 224 6 1,607 3,752 1,326 896 1,530 1,863 1,889 4,156 3,424 2,810 614 441 6 1,606 4,236 951 1,153 2,132 2,095 2,141 4,808 4,040 3,134 906 324 6 1,936 4,823 1,392 1,331 2,101 2,202 2,622 5,794 4,503 3,495 1,008 361 6 2,332 5,688 1,782 1,516 2,391 2,416 3,272 6,979 32 3,063 3,095 264 (170) 3,190 31 3,354 3,385 284 (201) 3,468 31 4,067 4,098 276 (218) 4,156 31 4,697 4,728 307 (228) 4,808 31 5,683 5,714 307 (228) 5,794 31 6,868 6,900 307 (228) 6,979 CY08 CY09 CY10 CY11 CY12E CY13E

August 16, 2012

Bosch | 2QCY2012 Result Update

Cash flow statement (Standalone)

Y/E Dec (` cr) Profit before tax Depreciation Change in working capital Others Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in fixed assets (Inc.)/Dec. in investments Other income Cash Flow from Investing Issue of equity Inc./(Dec.) in loans Dividend paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in cash Opening Cash balances Closing Cash balances CY08 776 302 (247) 186 (311) (223) 483 (391) 197 311 117 50 24 (289) (215) 385 686 1,071 CY09 729 304 130 209 (285) (203) 885 (75) (551) 285 (341) (1) 20 94 (659) (546) (3) 1,071 1,068 CY10 1,202 254 (178) 159 (207) (344) 886 (277) (190) 207 (260) (8) 110 (471) (368) 258 1,068 1,326 CY11 1,518 258 (627) 241 (338) (451) 601 (623) 1 338 (284) 31 493 (1,215) (692) (374) 1,326 951 CY12E 1,652 324 (45) (366) (479) 1,086 (500) (329) 366 (462) 183 (183) 440 951 1,392 CY13E 1,927 361 (261) (403) (559) 1,065 (500) (396) 403 (492) 183 (183) 390 1,392 1,782

August 16, 2012

10

Bosch | 2QCY2012 Result Update

Key ratios
Y/E Dec Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) (0.5) (2.0) 63.5 (0.7) (2.7) 428.4 (0.6) (2.1) (0.5) (1.5) (0.5) (1.9) 2,697.1 (0.6) (2.0) 2,806.1 1.9 41 51 59 29 1.8 42 49 61 31 2.3 37 36 60 25 2.5 45 38 65 39 2.4 48 38 67 49 2.4 48 38 67 48 18.9 19.4 17.9 15.3 13.5 15.6 26.2 28.2 20.9 27.6 28.3 22.6 24.3 25.5 20.5 23.9 25.9 19.8 12.0 0.7 2.3 19.8 2.4 (0.6) 10.1 10.6 0.7 2.2 16.9 0.3 (0.6) 7.0 15.0 0.7 2.6 28.1 1.0 (0.6) 10.5 15.5 0.7 2.4 26.4 0.1 (0.6) 11.8 14.5 0.7 2.2 22.5 0.1 (0.5) 11.2 15.1 0.7 2.1 23.0 0.1 (0.5) 10.6 172.7 172.7 267.1 25.0 967 167.7 167.7 264.4 30.0 1,078 273.4 273.4 354.3 40.0 1,305 339.6 339.6 421.7 135.0 1,506 373.6 373.6 476.7 50.0 1,820 435.8 435.8 550.7 50.0 2,197 50.3 32.5 9.0 0.3 5.0 35.9 8.0 51.8 32.8 8.1 0.3 4.9 40.0 7.2 31.8 24.5 6.7 0.5 3.5 23.4 5.9 25.6 20.6 5.8 1.6 2.9 16.7 5.2 23.2 18.2 4.8 0.6 2.5 15.1 4.2 19.9 15.8 4.0 0.6 2.2 12.4 3.4 CY08 CY09 CY10 CY11 CY12E CY13E

254.3 2,874.6

August 16, 2012

11

Bosch | 2QCY2012 Result Update

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 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 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 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 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 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 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 Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Bosch No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 16, 2012

12