(Reuters) -Bosch posted a 3.4% rise in second-quarter profit on Tuesday, driven by healthy demand for its auto parts and consumer electronics.

The Indian arm of German automotive supplier Robert Bosch reported net profit of 5.54 billion rupees ($63 million) for the quarter ended September 30, up from 5.36 billion rupees a year earlier.

Revenue from operations rose 9.1% to 47.95 billion rupees, while total expenses rose 8.9%, led by a 10.6% growth in cost of materials consumed.

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KEY CONTEXT

India's auto sector had been grappling with weak domestic demand over recent quarters, but consumer spending has picked up lately, driven by festive season purchases and tax relief.

India announced tax cuts on hundreds of consumer items in September, ranging from soaps to small cars to spur domestic demand.

Bosch, India's top auto parts maker by market valuation, manufactures components and accessories for cars, two-wheelers, and railway systems, among other sectors.

Its automotive division contributes about 88% of the company's overall revenue.

Peers Uno Minda and Sona BLW Precision Forgings also reported higher quarterly profit.

PEER COMPARISON

Valuation (next Estimates (next 12 Analysts' sentiment

12 months) months)

RIC PE EV/EBITD Revenue Profit Mean # of Stock to price Div yield

A growth (%) growth rating * analysts target ** (%)

(%)

Bosch Ltd BOSH.NS 42.47 35.61 8.60 14.28 HOLD 4 1.08 1.39

Samvardhana Motherson SAMD.NS 23.50 9.91 7.33 19.45 BUY 20 0.93 0.55

International Ltd

UNO Minda Ltd UNOI.NS 51.48 28.45 17.71 26.01 BUY 17 0.96 0.18

Sona BLW Precision Forgings SONB.NS 40.28 23.70 20.45 15.07 BUY 16 0.91 0.65

Ltd

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.8950 Indian rupees

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)