Honeywell Automation India's profit growth slows as expenses climb

Honeywell Automation India

10/08/2023 14:07

BENGALURU, Aug 10 (Reuters) - Engineering firm Honeywell
Automation India  HONE.NS  reported its slowest profit growth in
five quarters on Thursday, as expenses, led by the rising costs,
outpaced revenue. 
    The Indian arm of U.S. conglomerate Honeywell International
Inc  HON.O  reported profit grew a marginal 1.4% to 1.03 billion
Indian rupees ($12.46 million) in the first quarter ended June
30.
    Revenue rose nearly 19% to 9.32 billion rupees in the June
quarter, slower than the 27.2% rise in revenue in the quarter
ended March 31.
    The growth in total costs, however, remained roughly the
same sequentially - expenses rose 22% this quarter, averaging
around 20% in the past three quarters.
    As a result, the Pune-based company's earnings before
interest, taxes, depreciation and amortisation margin fell to
12.9% compared with 16.3% last quarter and 15.5% in the
year-earlier quarter.
    The marginal rise in profit came from a 13% rise in other
income. However, the company did not specify what constituted
other income.
    Shares of Honeywell Automation India closed 1.53% higher at
42,484.05 rupees, ahead of results. 

($1 = 82.6380 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Janane
Venkatraman)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))