Johnson Controls-Hitachi Q1 Review - Results Below Expectations; Trimming Margin Forecasts: Nirmal Bang
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Nirmal Bang Report
Johnson Controls-Hitachi Air Conditioning India Ltd. posted revenue of Rs 4.9 billion in Q1 FY22, up 82.5% YoY on a low base but 18% below our estimate.
Cooling products segment’s revenue jumped by 87% YoY to Rs 4.8 billion (96.6% of total sales) while design and development segment’s sales grew by 8.9% YoY to Rs 171 million (2.8% of total sales).
Gross margin declined by 420 basis points YoY to 30.9%, likely due to commodity cost pressures.
Ebitda in Q1 FY22 stood at Rs 47 million, led by lower employee costs, leading to higher operating leverage.
Johnson Controls-Hitachi reported a net loss of Rs 109 million, below our estimate of a net profit of Rs 284 million.
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