Honeywell Automation India (517174) Q4 96/97 earnings summary

Executive summary

• FY96/97 total income rose 4% YoY to Rs 1,672.39 million; profit after tax increased 30% to Rs 38.673 million.

• Delayed customer purchasing decisions cut new orders 30% YoY, while management expected deferred decisions to support substantial order growth in FY97/98.

Financial highlights

• Operating profit increased to Rs 175.407 million from Rs 125.090 million; profit for the year before prior-period adjustments and tax was Rs 81.112 million.

• Prior-period adjustments were a Rs 31.969 million charge, primarily for losses on contracts carried forward from the prior year.

• Sales were Rs 1,658.018 million, including Rs 1,587.794 million from products and jobs and Rs 70.224 million from services.

Outlook and guidance

• FY97/98 new orders were expected to grow substantially as postponed purchasing decisions came through; management anticipated sustained profitable growth in coming years.

• Industrial automation, Hi-Spec Solutions, customer support, exports and building controls were each expected to support future growth.