Honeywell Automation Q2 Review - Weak Execution Impacts Earnings: ICICI Securities
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ICICI Securities Report
Honeywell Automation India Ltd. witnessed 3% YoY revenue decline and growth of 8% QoQ on a low base to Rs 7.3 billion in Q2 FY22.
Company reported an Ebitda margin of 14.6% (down 440 basis points YoY, 250 bps QoQ) due to 340 bps YoY increase in raw material cost proportion to 53%.
Staff expenses increased 80 bps YoY to 18.7% of sales, and other expenses were up 20 bps YoY to 13.7% of sales despite the revenue decline, further impacting Honeywell Automation margins.
Net working capital reduced marginally to 49 days from 51 at the end of FY21 and receivables reduced by Rs 460 million during the period.
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