Honeywell Automation India (517174) Q4 98/99 earnings summary

Executive summary

• Sales and other income rose 31% YoY to Rs 23,217.24 lakh; PAT more than doubled to Rs 1,111.05 lakh despite a sluggish economic environment.

• Operations cited stronger working-capital performance, productivity and customer satisfaction, alongside a healthy order book carried into FY99-00.

Financial highlights

• Sales and other income: Rs 23,217.24 lakh vs Rs 17,722.73 lakh; reported increase 31% YoY.

• PAT after prior-period and tax adjustments: Rs 1,111.05 lakh vs Rs 535.67 lakh; reported growth was 2.1x YoY.

• Prior-period adjustments were Rs 182.20 lakh vs Rs 143.33 lakh; proposed dividend was Rs 4.00/share vs Rs 2.25/share.

Outlook and guidance

• Strong technology, improved business mix and order book position support expectations for significant growth and improved profitability.

• Industrial Automation & Control opportunities center on Oil & Gas transportation, Power and LNG; Hi-Spec growth prospects tied to ERP, IIS and Advanced Process Control investment.

• Building Control demand expected to grow on safety, security and comfort needs; export engineering and software services outlook described as bright.

• Political and economic uncertainty could affect major customers’ capital spending; dedicated teams and business realignment were intended to address growth opportunities and limit impact.