Honeywell Automation India (517174) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 performance was pressured by weak industrial markets, delayed orders and lower new-project investment; reported sales and other income fell to Rs 2,361,022 thousand from Rs 2,758,907 thousand.

• Business mix shifted toward services, software, exports, building controls and security solutions; industrial automation market leadership was retained.

Financial highlights

• Sales were Rs 2,307,703 thousand and other income Rs 53,319 thousand in FY 2001-02, versus Rs 2,722,909 thousand and Rs 35,998 thousand, respectively, in FY 2000-01.

• Operating profit was Rs 298,574 thousand versus Rs 336,664 thousand; profit after tax and prior-period adjustments was Rs 168,481 thousand versus Rs 194,048 thousand.

• Basic EPS was Rs 19.06 versus Rs 21.95; taxation provision was Rs 5,600 thousand versus Rs 43,000 thousand, reflecting increased export income.

Outlook and guidance

• Industrial business expected to remain under pressure for most of FY 2002-03; demand for control and automation products was expected to recover only in Q3 or Q4, with focus on software and services.

• Building controls anticipated major revenue growth on a good order backlog and investment in commercial buildings and infrastructure.

• Home security and security solutions were expected to benefit from rising security awareness and investment in defence, government and infrastructure.

• Exports outlook was promising, with existing backlog expected to support FY 2002-03 revenue growth targets and plans to add delivery competencies.