Honeywell Automation India's Q2 profit falls on sluggish demand

Honeywell Automation India

29/10/2024 12:55

Oct 29 (Reuters) - Engineering firm Honeywell Automation
India  HONE.NS  reported a 5.6% fall in its second-quarter
profit on Tuesday, hurt by slowing demand.
    The Indian arm of U.S. conglomerate Honeywell International
 HON.O  said its profit fell to 1.15 billion rupees ($13.7
million) for the three months ending Sept. 30 from 1.22 billion
rupees a year ago.
    Honeywell Automation India provides building automation
solutions to industrial clients and designs emission-curbing and
energy transition products. 
    Growth in India's manufacturing industry cooled in August
and September, according to a business survey.  urn:newsml:reuters.com:*:nZRN00A6JH 
    Analysts have said that Indian exporters are bearing the
brunt of increased shipping costs due to the Red Sea crisis.
    Honeywell Automation's revenue from operations fell 7.3% to
10.24 billion rupees. The company does not provide a breakdown
of its revenue distribution.
    Cost of materials consumed, which makes up almost half of
the expenses, grew 12.11% in the quarter. 
    Parent company Honeywell projected annual sales below Wall
Street expectations and missed quarterly revenue estimates last
week.  urn:newsml:reuters.com:*:nL4N3M01UJ
    Honeywell Automation's stock, one of India's costliest,
closed 0.3% up ahead of its results. The shares have risen
nearly 33% so far this year, while that of rival ABB India
 ABB.NS  have jumped about 60%.
    
    

 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))