Honeywell Automation Q4 Review - Weak Execution Impacts Earnings: ICICI Securities

Honeywell International Inc. Signage .(Photographer: Joshua Lott/Bloomberg).

Honeywell Automation Q4 Review - Weak Execution Impacts Earnings: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Honeywell Automation India Ltd. witnessed 4.5% YoY and 23% QoQ drop in revenues to Rs 6.7 billion, which we believe should be due to advent of Covid-19 second wave.

Company reported an Ebitda margin of 19.2% (up 100 basis points YoY / down 220 bps QoQ) despite 340bps YoY increase in raw material costs to Rs 3.3 billion.

Other expenses declined 26% YoY and staff expenses dipped 7% YoY due to cost reduction measures, supporting the margins.

We believe, the margin expansion was aided by reduction in travel due to Covid-19 restrictions.

Net working capital increased to 51 days from 33 in FY20 due to higher receivables.

Click on the attachment to read the full report:

ICICI Securities Honeywell Automation India Q4FY21 Results Update .pdf

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