JOHNSON CONTROLS HITACHI 2022-23 Annual Report Analysis

Mon, 19 Feb

JOHNSON CONTROLS HITACHI has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

JOHNSON CONTROLS HITACHI Income Statement Analysis

• Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.5% in FY23 as against 4.4% in FY22.
• Depreciation charges increased by 4.3% and finance costs decreased by 17.6% YoY, respectively.
• Other income grew by 56.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.7% in FY22 to 3.4% in FY23.

JOHNSON CONTROLS HITACHI Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,590	23,844	10.4%
Other income	Rs m	91	142	56.0%
Total Revenues	Rs m	21,682	23,987	10.6%
Gross profit	Rs m	947	-366	NA
Depreciation	Rs m	721	753	4.3%
Interest	Rs m	91	75	-17.6%
Profit before tax	Rs m	226	-1,052	NA
Tax	Rs m	65	-231	NA
Profit after tax	Rs m	161	-821	NA
Gross profit margin	%	4.4	-1.5
Effective tax rate	%	28.6	21.9
Net profit margin	%	0.7	-3.4

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JOHNSON CONTROLS HITACHI Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 7.0%.
• Current assets fell 2% and stood at Rs 13 billion, while fixed assets fell 1% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 20 billion as against Rs 20 billion during FY22, thereby witnessing a fall of 1%.

JOHNSON CONTROLS HITACHI Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,399	6,592	-10.9
Current Liabilities	Rs m	9,388	10,043	7.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,209	19,923	-1.4
Current assets	Rs m	13,226	12,989	-1.8
Fixed Assets	Rs m	6,983	6,934	-0.7
Total Assets	Rs m	20,209	19,923	-1.4

JOHNSON CONTROLS HITACHI Cash Flow Statement Analysis

• JOHNSON CONTROLS HITACHI's cash flow from operating activities (CFO) during FY23 stood at Rs -308 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -431 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 655 million, an improvement of 601% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -85 million from the Rs -916 million net cash flows seen during FY22.

JOHNSON CONTROLS HITACHI Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-549	-308	-
Cash Flow from Investing Activities	Rs m	-460	-431	-
Cash Flow from Financing Activities	Rs m	93	655	601.1%
Net Cash Flow	Rs m	-916	-85	-

Current Valuations for JOHNSON CONTROLS HITACHI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -30.2, an decline from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,019.4, stands at -33.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at -647.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	794.1	877.0
TTM Earnings per share	Rs	5.9	-30.2
Diluted earnings per share	Rs	5.9	-30.2
Price to Cash Flow	x	54.5	-647.4
TTM P/E ratio	x	298.1	-33.7
Price / Book Value ratio	x	8.0	6.8
Market Cap	Rs m	59,355	44,539
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JOHNSON CONTROLS HITACHI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.4x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at -13.0x during FY23, from 3.5x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -12.5% during FY23, from 2.2% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at -14.8% during FY23, from 4.3% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at -3.7% during FY23, from 1.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.3
Debtors’ Days	Days	70	49
Interest coverage	x	3.5	-13.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.2	-3.7
Return on equity	%	2.2	-12.5
Return on capital employed	%	4.3	-14.8

To see how JOHNSON CONTROLS HITACHI has performed over the last 5 years, please visit here.

JOHNSON CONTROLS HITACHI Share Price Performance

Over the last one year, JOHNSON CONTROLS HITACHI share price has moved down from Rs 1,767.3 to Rs 1,019.4, registering a loss of Rs 747.9 or around 42.3%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 37,628.5 (up 0.3%). Over the last one year it has moved down from 42,271.9 to 37,628.5, a loss of 4,643 points (down 11.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for JOHNSON CONTROLS HITACHI and quarterly results for JOHNSON CONTROLS HITACHI)