Honeywell Automation India Q2 Results: Profit falls 5.6% to Rs 115 crore on sluggish demand
Honeywell Automation India 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 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.
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. 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 have jumped about 60%.
