3QCY2012 Result Update | Auto Ancillary

November 9, 2012

Bosch
Performance Highlights
Y/E Dec (` cr) Net Sales EBITDA EBITDA Margin (%) Adj. PAT 3QCY12 2,052 273 13.3 203 3QCY11 1,991 385 19.3 288 % chg (yoy) 3.0 (29.0) (600)bp (29.6) 2QCY12 2,174 329 15.1 247 % chg (qoq) (5.6) (17.0) (182)bp (18.0)

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 27,818 (1,857) 0.4 9,300/6,425 1,420 10 18,684 5,686 BOSH.BO BOS@IN

`8,859 -

Source: Company, Angel Research

Bosch (BOS) reported a poor performance for 3QCY2012 due to a sequential decline in the operating margin (down 182bp) led by a sequential decline in the top-line and lower operating leverage benefits. We revise our earnings estimates downwards (by 4.7%/4.2% in CY2012E/13E) 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. Poor performance for 3QCY2012: BOS posted a sluggish growth in net sales of 3% yoy (down 5.6% qoq) to `2,052cr, broadly in-line with estimates, on account of continued weakness in medium and heavy commercial vehicle (MHCV) and tractor sales. The automotive segment posted a subdued growth of 1.6% yoy (down 5.7% qoq) due to marginal decline in diesel system sales and 17.6% yoy decline in exports revenue. The non-auto segment too registered a moderate growth of 7.6% yoy (down 7.3% qoq) during the quarter. The EBITDA margin declined 182bp sequentially to 13.3% primarily due to decline in top-line and lower operating leverage benefits. As a result employee and other expenditure as a percentage of sales increased by 60bp and 90bp respectively (though constant in absolute terms). On a yoy basis, margins contracted steeply by 600bp due to INR depreciation which resulted in a 342bp increase in raw-material cost as a percentage of sales. Further, other expenditure too witnessed a 170bp yoy expansion during the quarter. As a result, the operating profit declined 29% yoy (17% qoq) to `273cr. The net profit too declined 29.6% yoy (18% qoq) to `203cr. 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 MHCV and tractor industry. At `8,859, BOS is fairly valued at 21.2x CY2013E earnings. 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 6.4 (0.5)

1yr 7.6

3yr 13.2

26.0 104.1

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 32.4 6.8 20.9 26.2 3.5 23.9

CY2011 8,141 18.3 1,066 24.2 18.3 339.6 26.1 5.9 22.6 27.6 3.0 17.1

CY2012E 8,776 7.8 1,042 (2.3) 16.6 331.9 26.7 5.0 18.7 21.3 2.7 17.0

CY2013E 10,276 17.1 1,312 25.8 18.0 417.7 21.2 4.1 19.5 23.7 2.2 13.0

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

Please refer to important disclosures at the end of this report

Bosch | 3QCY2012 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

3QCY12 2,052 714 34.8 247 12.0 459 22.4 358 17.4 1,778 273 13.3 98 104 279 279 13.6 76 27.3 203 203 9.9 31.4 64.6 64.6

3QCY11 1,991 686 34.4 224 11.2 385 19.4 312 15.7 1,607 385 19.3 64 85 406 406 20.4 118 29.0 288 288 14.5 31.4 91.8 91.8

% chg (yoy) 3.0 4.2 10.5 19.1 14.6 10.7 (29.0) 52.5 21.6 (31.2) (31.2) (35.2) (29.6) (29.6)

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

% chg (qoq) (5.6) (3.8) (0.1) (7.3) (0.4) (3.6) (17.0) (12.0) 40.0 28.4 16.4 (18.4) (18.4) (19.3) (18.0) (18.0)

9MCY12 6,521 2,185 33.5 744 11.4 1,480 22.7 1,032 15.8 5,441 1,080 16.6 238 259 1,101 1,101 16.9 315 28.6 786 786 12.1 31.4

9MCY11 6,137 1,995 32.5 675 11.0 1,397 22.8 912 14.9 4,979 1,158 18.9 (46) 161 169 1,211 1,211 19.7 370 30.5 841 841 13.7 31.4 268.0 268.0

% chg (yoy) 6.3 9.5 10.2 6.0 13.1 9.3 (6.7) 47.5 53.7 (9.1) (9.1) (14.8) (6.6) (6.6)

(29.6) (29.6)

78.8 78.8

(18.0) (18.0)

250.4 250.4

(6.6) (6.6)

Exhibit 2: 3QCY2012 Actual vs Angel estimates

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

Actual 2,052 273 13.3 203

Estimates 2,097 351 16.7 222

Variation (%) (2.2) (22.1) (341)bp (8.8)

Top-line up by a modest 3% yoy: For 3QCY2012 BOS posted a sluggish growth of 3% yoy (down 5.6% qoq) in its top-line to `2,052cr, broadly in-line with estimates, on account of weakness in the MHCV and tractor sales. The automotive segment (~90% of top-line) posted a subdued growth of 1.6% yoy (down 5.7% qoq) due to marginal decline in diesel system sales and 17.6% yoy decline in exports revenue. The non-auto segment too registered a moderate growth of 7.6% yoy (down 7.3% qoq) during the quarter.

November 9, 2012

Bosch | 3QCY2012 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

3QCY12 1,813 227 2,039 9 2,030 208 15 224 0 (56) 279 11.5 6.7 11.0

3QCY11 1,784 211 1,995 25 1,969 319 25 344 45 (16) 406 17.9 12.0 17.3

% chg (yoy) 1.6 7.6 2.2 3.1 (34.8) (39.4) (35.1) (99.8) 250.9 (31.2) (641)bp (522)bp

2QCY12 1,922 244 2,166 9 2,157 276 8 284 0 (58) 342 14.3 3.2 13.1

% chg (qoq) (5.7) (7.3) (5.9) (2.9) (5.9) (24.5) 92.4 (21.2) 40.0 (4.7) (18.4) (286)bp 349bp

9MCY12 5,745 746 6,491 36 6,455 907 50 957 0 (144) 1,101 15.8 6.7 14.7

9MCY11 5,457 641 6,098 43 6,056 1,004 67 1,070 92 (49) 1,211 18.4 10.4 17.6

% chg (yoy) 5.3 16.4 6.4 6.6 (9.6) (24.8) (10.6) (99.9) 192.3 (9.1) (260)bp (369)bp

Exhibit 4: Sluggish growth in top-line

(` cr) 2,500 2,000 1,500 21.1 1,000 500 0 16.4 8.3 10.0 5.6 3.0 1,711 1,884 31.9 29.5 Net sales growth (RHS) 2,295 2,174 2,086 2,060 2,052 1,991 2,040 30.7 Net sales (%) 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 1,500 1,000 500 0 160 164 227 204 211 206 275 244 227 1,845 1,551 1,614 1,828 1,784 2,010 1,774 1,922 1,813 Automotive revenue Other revenue

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY12

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY12

Source: Company, Angel Research

3QCY12

Source: Company, Angel Research

EBITDA margin deteriorates further to 13.3%: BOSs EBITDA margin declined 182bp sequentially to 13.3% primarily due to decline in the top-line and lower operating leverage benefits. As a result employee and other expenditure as a percentage of sales increased by 60bp and 90bp respectively (though constant in absolute terms). On a yoy basis, margins contracted steeply by 600bp due to INR depreciation which resulted in a 342bp increase in raw-material cost as a percentage of sales. Further, other expenditure too witnessed a 170bp yoy expansion during the quarter. Thus, the operating profit declined sharply by 29% yoy (17% qoq) to `273cr.

November 9, 2012

3QCY12

Bosch | 3QCY2012 Result Update

Exhibit 6: EBITDA margin deteriorates further ...

(%) 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 19.8 16.4 18.9 18.4 19.3 17.5 20.8 15.1 13.3 53.4 53.7 EBITDA margins 56.7 56.8 54.5 Raw material cost/sales 53.7 55.3 57.4 57.8

Exhibit 7: ... leading to a 29.6% fall in net profit

(` cr) 400 350 300 250 200 150 100 50 0 236 211 274 279 288 281 336 247 203 Net profit 13.8 11.2 13.2 13.5 14.5 13.8 Net profit margin (RHS) 14.6 11.4 (%) 16.0 14.0 9.9 12.0 10.0 8.0 6.0 4.0 2.0 0.0

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY12

3QCY10

4QCY10

1QCY11

2QCY11

3QCY11

4QCY11

1QCY12

2QCY12

Source: Company, Angel Research

3QCY12

Source: Company, Angel Research

Weak operating performance impacts bottom-line: Led by weak operating performance, the net profit for the quarter stood at `203cr, down 29.6% yoy and 18% qoq. Further, the negative impact of higher depreciation expense (up 52.5% yoy) was mitigated by higher other income (21.6% yoy) and a lower tax rate.

Conference call Key highlights

The management expects gradual recovery in MHCV sales from 4QFY2013 led by base effect. However, decline in interest rates and pick-up in economic activity may lead to a sharp revival in growth. According to the management, tractor sales are likely to decline by 6-7% in FY2013. Other operating income during the quarter was lower due to lower exports and lower export incentives. The management indicated that the current capacity utilization stands around 70-75% and has been affected by slowing demand and expanding capacity. The management mentioned that post the plant shutdowns in 3QCY2012, inventory levels are under control. The company intends to incur capital expenditure of `500cr in CY2012 unless slowdown in demand persists even on the low base going forward. 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%.

November 9, 2012

3QCY12

Bosch | 3QCY2012 Result Update

Investment arguments
Technology-intensive industry supplemented by high bargaining power: We estimate BOS to post an 11-12% 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

We revise our earnings estimates downwards (by 4.7%/4.2% in CY2012E/13E) 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 8,776 17.2 1,094 CY2013E 10,276 18.4 1,368 Revised Estimates CY2012E 8,776 16.6 1,042 CY2013E 10,276 18.0 1,312 % chg CY2012E 0.0 (60)bp (4.7) CY2013E 0.0 (35)bp (4.2)

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 an 11-12% CAGR each in its net sales and net profit over CY2011-13E. As a result, we estimate BOS to post an EPS of `331.9 and `417.7 for CY2012E and CY2013E respectively. At `8,859, BOS is trading at fair valuations of 21.2x CY2013E earnings. Thus, we maintain our Neutral rating on the stock.

November 9, 2012

Bosch | 3QCY2012 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 4.3 23.3 2.4

CY13E 4.9 27.0 2.6

Exhibit 10: Angel vs consensus forecast

Angel estimates CY12E Total op. income (` cr) EPS (`) 8,776 331.9 CY13E 10,276 417.7 Consensus CY12E 8,699 338.0 CY13E 10,132 418.7 Variation (%) CY12E 0.9 (1.8) CY13E 1.4 (0.2)

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

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Jan-03

0.0

Nov-08

Nov-09

Nov-10

Nov-11

Nov-12

May-06

May-11

Aug-05

Mar-09

Dec-09

Feb-12 Jan-12

Sep-10

Jan-07

Jul-08

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 13: Premium/Discount to Sensex

(%) 120 100 80 60 40 20 0 (20) (40) (60) (80) Absolute premium Five-yr average premium

Exhibit 14: Bosch vs. Sensex

Bosch India 600 500 400 300 200 100 Sensex

Dec-08

Dec-09

Mar-03

Mar-04

Dec-10

Jan-07

Apr-02

Jan-08

Nov-11

Nov-12

Feb-05

Feb-06

Feb-08

May-07

Dec-08

Sep-09

Jul-06

Jan-05

Jun-10

Oct-05

Apr-11

Source: Company, Angel Research

Source: Company, Angel Research

November 9, 2012

Nov-12

Nov-12

Oct-07

Bosch | 3QCY2012 Result Update

Exhibit 15: Auto Ancillary Recommendation summary

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

Reco. Accumulate Accumulate Buy Neutral Accumulate Neutral Neutral Accumulate

#

CMP (`) 258 375 262 8,859 138 1,751 162 31

Tgt. price (`) 270 430 324 155 35

Upside (%) 5.0 14.7 23.8 12.4 12.9

P/E (x) FY13E FY14E 14.9 10.1 14.0 26.7 19.3 17.0 20.1 8.3 13.0 8.7 11.3 21.2 15.4 13.8 15.3 5.3

EV/EBITDA (x) FY13E 8.9 5.3 6.8 17.0 10.6 10.4 8.1 4.8 FY14E 7.6 4.2 5.7 13.0 8.3 8.0 6.6 4.3

RoE (%) FY13E 31.1 21.2 18.5 18.7 18.5 21.3 22.9 8.2 FY14E 27.6 21.2 19.7 19.5 19.9 21.6 24.7 12.2

FY12-14E EPS CAGR (%) 25.5 6.2 14.6 10.9 28.4 9.5 56.2 7.7

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.

November 9, 2012

Bosch | 3QCY2012 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 8,776 7.8 7,319 4,871 526 983 940 1,457 (2.4) 16.6 340 1,117 (9.6) 13.0 1 351 1,468 (6.7) 1,468 426 29.0 1,042 1,042 (2.3) 12.1 331.9 331.9 (2.3) CY13E 10,276 17.1 8,423 5,608 606 1,152 1,056 1,854 27.2 18.0 379 1,475 32.0 14.6 1 386 1,860 26.7 1,860 549 29.5 1,312 1,312 25.8 13.0 417.7 417.7 25.8

November 9, 2012

Bosch | 3QCY2012 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 4,041 3,150 891 324 6 1,892 4,728 1,391 1,293 2,045 2,178 2,550 5,663 4,504 3,529 975 361 6 2,269 5,602 1,695 1,516 2,390 2,421 3,180 6,792 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 5,552 5,583 307 (228) 5,663 31 6,681 6,712 307 (228) 6,792 CY08 CY09 CY10 CY11 CY12E CY13E

November 9, 2012

Bosch | 3QCY2012 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 1,468 340 26 (351) (426) 1,057 (500) (286) 351 (435) 183 (183) 439 951 1,391 CY13E 1,860 379 (326) (386) (549) 979 (500) (377) 386 (491) 183 (183) 305 1,391 1,695

November 9, 2012

10

Bosch | 3QCY2012 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) (2.0) 2,234.7 (0.5) (2.0) 2,919.0 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 68 49 2.4 48 38 67 47 18.9 19.4 17.9 15.3 13.5 15.6 26.2 28.2 20.9 27.6 28.3 22.6 21.3 22.5 18.7 23.7 25.6 19.5 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 13.0 0.7 2.2 19.9 0.1 (0.5) 9.9 14.6 0.7 2.2 22.6 0.1 (0.5) 10.5 172.7 172.7 267.1 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 1,506 331.9 331.9 440.2 50.0 1,778 417.7 417.7 538.3 50.0 2,138 51.3 33.2 9.2 0.3 5.1 36.7 8.2 52.8 33.5 8.2 0.3 5.0 40.9 7.4 32.4 25.0 6.8 0.5 3.5 23.9 6.1 26.1 21.0 5.9 1.5 3.0 17.1 5.3 26.7 20.1 5.0 0.6 2.7 17.0 4.4 21.2 16.5 4.1 0.6 2.2 13.0 3.6 CY08 CY09 CY10 CY11 CY12E CY13E

254.3 2,874.6

November 9, 2012

11

Bosch | 3QCY2012 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%)

November 9, 2012

12