HONEYWELL AUTOMATION 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HONEYWELL AUTOMATION 2017-18 Annual Report Analysis
Thu, 20 Sep

HONEYWELL AUTOMATION has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HONEYWELL AUTOMATION Income Statement Analysis

  • Operating income during the year rose 11.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 27.2% YoY during the fiscal. Operating profit margins witnessed a rise and up at 13.5% in FY18 as against 11.9% in FY17.
  • Depreciation charges decreased by 7.0% and finance costs increased by 7.7% YoY, respectively.
  • Other income declined by 12.9% YoY.
  • Net profit for the year grew by 47.4% YoY.
  • Net profit margins during the year grew from 6.9% in FY17 to 9.2% in FY18.

HONEYWELL AUTOMATION Income Statement 2017-18

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
Net SalesRs m24,10126,90011.6%
Other incomeRs m380331-12.9%
Total RevenuesRs m24,48127,23111.2%
Gross profitRs m2,8593,63627.2%
DepreciationRs m164152-7.0%
InterestRs m337.7%
Profit before taxRs m3,0733,81224.1%
TaxRs m1,3791,315-4.6%
Profit after taxRs m1,6952,49747.4%
Gross profit margin%11.913.5
Effective tax rate%44.934.5
Net profit margin%6.99.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HONEYWELL AUTOMATION Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 10 billion as compared to Rs 8 billion in FY17, thereby witnessing an increase of 31.9%.
  • Current assets rose 26% and stood at Rs 21 billion, while fixed assets rose 4% and stood at Rs 850 million in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 24 billion as against Rs 20 billion during FY17, thereby witnessing a growth of 25%.

HONEYWELL AUTOMATION Balance Sheet as on March 2018

No. of Mths Year Ending12 Mar-17*12 Mar-18*% Change
NetworthRs m11,80314,18720.2
 
Current LiabilitiesRs m7,5789,99231.9
Long-term DebtRs m000.0
Total LiabilitiesRs m19,51524,31924.6
 
Current assetsRs m16,46320,74426.0
Fixed AssetsRs m 8158504.3
Total AssetsRs m19,51524,31924.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HONEYWELL AUTOMATION Cash Flow Statement Analysis

  • HONEYWELL AUTOMATION's cash flow from operating activities (CFO) during FY18 stood at Rs 3 billion, an improvement of 22.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -862 million, an improvement of 1.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -106 million, an improvement of 0% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 2 billion from the Rs 1 billion net cash flows seen during FY17.

HONEYWELL AUTOMATION Cash Flow Statement 2017-18

ParticularsNo. of months1212% Change
Year EndingMar-17Mar-18
Cash Flow from Operating ActivitiesRs m2,1522,62922.2%
Cash Flow from Investing ActivitiesRs m-846-862-
Cash Flow from Financing ActivitiesRs m-106-106-
Net Cash FlowRs m1,1951,68040.6%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HONEYWELL AUTOMATION

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 282.5, an improvement from the EPS of Rs 191.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 21,841.4, stands at 67.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 10.0 times, while the price to sales ratio stands at 5.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 72.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Sales per share (Unadj.)Rs2,726.33,043.0
TTM Earnings per shareRs191.7282.5
Diluted earnings per shareRs191.7282.5
Price to Cash Flow x103.972.9
TTM P/E ratiox67.567.5
Price / Book Value ratiox6.910.0
Market CapRs m193,078193,078
Dividends per share (Unadj.)Rs10.032.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HONEYWELL AUTOMATION

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.1x during FY18, from 2.2x during FY17. 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 1,362.5x during FY18, from 1,183.0x during FY17. 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 improved and stood at 17.6% during FY18, from 14.4% during FY18. 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 improved and stood at 26.9% during FY18, from 26.1% during FY17. 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 improved and stood at 10.3% during FY18, from 8.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-17*12 Mar-18*
Current ratiox2.22.1
Debtors’ DaysDays7680
Interest coveragex1,183.01,362.5
Debt to equity ratiox0.00.0
Return on assets%8.710.3
Return on equity%14.417.6
Return on capital employed%26.126.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how HONEYWELL AUTOMATION has performed over the last 5 years, please visit here.

HONEYWELL AUTOMATION Share Price Performance

Over the last one year, HONEYWELL AUTOMATION share price has moved up from Rs 16,847.5 to Rs 21,841.4, registering a gain of Rs 4,993.9 or around 29.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,168.6 (down 0.1%). Over the last one year it has moved down from 18,453.8 to 18,168.6, a loss of 285 points (down 1.5%).

Overall, the S&P BSE SENSEX is up 14.6% over the year.

(To know more, check out historical annual results for HONEYWELL AUTOMATION and quarterly results for HONEYWELL AUTOMATION)

Equitymaster requests your view! Post a comment on "HONEYWELL AUTOMATION 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

HONEYWELL AUTOMATION Announces Quarterly Results (2QFY20); Net Profit Up 23.4% (Quarterly Result Update)

Oct 29, 2019 | Updated on Oct 29, 2019

For the quarter ended September 2019, HONEYWELL AUTOMATION has posted a net profit of Rs 1 bn (up 23.4% YoY). Sales on the other hand came in at Rs 8 bn (up 5.8% YoY). Read on for a complete analysis of HONEYWELL AUTOMATION's quarterly results.

HONEYWELL AUTOMATION 2018-19 Annual Report Analysis (Annual Result Update)

Sep 19, 2019 | Updated on Sep 19, 2019

Here's an analysis of the annual report of HONEYWELL AUTOMATION for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of HONEYWELL AUTOMATION. Also includes updates on the valuation of HONEYWELL AUTOMATION.

HONEYWELL AUTOMATION Announces Quarterly Results (1QFY20); Net Profit Up 24.4% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, HONEYWELL AUTOMATION has posted a net profit of Rs 1 bn (up 24.4% YoY). Sales on the other hand came in at Rs 9 bn (up 11.2% YoY). Read on for a complete analysis of HONEYWELL AUTOMATION's quarterly results.

Garden Reach Shipbuilders and Engineers Ltd: Is This PSU Shipbuilder Worth Betting On? (IPO)

Sep 24, 2018

Should you apply for the IPO of Garden Reach Shipbuilders and Engineers Ltd?

H.G Infra Engineering Ltd. (IPO)

Feb 24, 2018

Should you subscribe to the IPO of H.G Infra Engineering Ltd.?

More Views on News

Most Popular

Crash Alert! Is There a Big Bubble in Nestle, HUL and Asian Paints?(Profit Hunter)

Nov 7, 2019

Is this the beginning of the end of multibagger gains in quality stocks like Nestle, HUL, and Asian Paints?

Why Moody's Rating Downgrade is a Strong Sign to Buy Stocks(The 5 Minute Wrapup)

Nov 8, 2019

Investors who took cues from Moody's rating downgrade in 1992 and 2002 created some of the biggest wealth of their lifetime.

These 10 Days Are Crucial for Getting Rich in the Smallcap Rebound(Profit Hunter)

Nov 5, 2019

How to avoid the most common investing mistake and make the most of the smallcap rebound.

The Top Stocks for 2020 Pass This Most Critical Metric(The 5 Minute Wrapup)

Nov 5, 2019

Charlie Munger's favorite fictional character, Mr Glotz, picks stocks using this metric.

A Trade that Could Generate Profits for Decades

Nov 14, 2019

India's #1 trader is back on the Investor Hour. Vijay Bhambwani talks to us about his super-profitable trading system and shares with us his #1 long term trade. Listen in...

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2020
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK HONEYWELL AUTOMATION

  • Track your investment in HONEYWELL AUTOMATION with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON HONEYWELL AUTOMATION

HONEYWELL AUTOMATION 5-YR ANALYSIS

COMPARE HONEYWELL AUTOMATION WITH

MARKET STATS