Honeywell Automation India (517174) Q4 97/98 earnings summary

Executive summary

• FY98 total income rose 6% YoY; profit after tax increased 39% to Rs 535.67 lakh despite economic slowdown.

• Total orders booked were 55% above the prior year, with major contract wins in Industrial Automation and Building Control.

Financial highlights

• Sales and other income were Rs 17,722.73 lakh vs Rs 16,723.91 lakh in FY97; sales alone were Rs 17,561.97 lakh.

• Operating profit was Rs 1,642.14 lakh vs Rs 1,754.27 lakh; profit for the year before prior-period adjustments was Rs 808.86 lakh vs Rs 811.12 lakh.

• Prior-period adjustments were Rs 143.33 lakh vs Rs 319.69 lakh; after tax, profit was Rs 535.67 lakh vs Rs 386.73 lakh.

• Proposed dividend was Rs 2.25 per share; Rs 250 lakh was transferred to general reserve.

Outlook and guidance

• Industrial Automation and Control businesses were expected to sustain momentum, with systems supported by customer services, Hi Spec Solutions, exports and software capabilities.

• Building Control was expected to become a larger contributor; investment and focus were planned around integrated building, HVAC, fire and security systems.

• Management characterized the outlook as positive, targeting customer satisfaction, operational excellence, sustained growth and profitability, while noting economic and political uncertainty.