Honeywell Automation India (517174) Q4 02/03 earnings summary

Executive summary

• Order bookings grew 48% YoY and revenue rose 15% despite a difficult market; growth was reported across business segments and the larger order backlog supported the outlook.

• Revenue mix shifted toward services and products: services rose to 43% from 38%, products to 12% from 11%, and solutions eased to 45% from 51%.

Financial highlights

• Sales and other income was Rs 2,723.22m, up 15% YoY; operating profit was Rs 298.57m versus Rs 303.06m in FY02.

• Net profit after prior-period adjustments was Rs 167.62m versus Rs 168.48m; EPS was Rs 18.96 versus Rs 19.06.

• Adjusted for prior-period items, profit after tax was Rs 182.76m versus Rs 171.75m; prior-period adjustments were Rs 15.14m versus Rs 3.26m.

• Employee remuneration and benefits rose to Rs 368.78m from Rs 290.10m; selling, administration and other expenses increased to Rs 459.40m from Rs 352.89m.

Outlook and guidance

• FY04 outlook was positive, supported by a healthy order backlog, broadly based segment growth and signs of economic recovery; management expected stronger markets to support performance.

• Building Controls opportunities included airports, mass rapid transit and highway automation; Global Services anticipated continued growth, including embedded design capabilities.

• Industrial Solutions projections were subject to reservation given slow investment recovery and project decision delays.