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HONEYWELL AUTOMATION 2018-19 Annual Report Analysis
Sun, 31 Mar

HONEYWELL AUTOMATION has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

HONEYWELL AUTOMATION Income Statement Analysis

  • Operating income during the year rose 18.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 31.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.2% in FY19 as against 13.7% in FY18.
  • Depreciation charges increased by 4.5% and finance costs increased by 70.8% YoY, respectively.
  • Other income grew by 179.4% YoY.
  • Net profit for the year grew by 43.7% YoY.
  • Net profit margins during the year grew from 9.3% in FY18 to 11.3% in FY19.

HONEYWELL AUTOMATION Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 26,818 31,747 18.4%
Other income Rs m 338 945 179.4%
Total Revenues Rs m 27,157 32,693 20.4%
Gross profit Rs m 3,664 4,828 31.8%
Depreciation Rs m 152 159 4.5%
Interest Rs m 38 65 70.8%
Profit before tax Rs m 3,812 5,549 45.6%
Tax Rs m 1,315 1,961 49.1%
Profit after tax Rs m 2,497 3,588 43.7%
Gross profit margin % 13.7 15.2
Effective tax rate % 34.5 35.3
Net profit margin % 9.3 11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

HONEYWELL AUTOMATION Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 11 billion as compared to Rs 10 billion in FY18, thereby witnessing an increase of 10.7%.
  • Current assets rose 21% and stood at Rs 25 billion, while fixed assets fell 70% and stood at Rs 3 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 28 billion as against Rs 31 billion during FY18, thereby witnessing a fall of 9%.

HONEYWELL AUTOMATION Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 14,148 17,422 23.1
 
Current Liabilities Rs m 9,992 11,057 10.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 30,935 28,161 -9.0
 
Current assets Rs m 20,715 25,144 21.4
Fixed Assets Rs m 10,221 3,017 -70.5
Total Assets Rs m 30,935 28,161 -9.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HONEYWELL AUTOMATION Cash Flow Statement Analysis

  • HONEYWELL AUTOMATION's cash flow from operating activities (CFO) during FY19 stood at Rs 3 billion, an improvement of 18.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -4 billion, an improvement of 155.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -341 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -2 billion from the Rs 800 million net cash flows seen during FY18.

HONEYWELL AUTOMATION Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 2,629 3,118 18.6%
Cash Flow from Investing Activities Rs m -1,742 -4,458 -
Cash Flow from Financing Activities Rs m -106 -341 -
Net Cash Flow Rs m 800 -1,655 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HONEYWELL AUTOMATION

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 405.9, an improvement from the EPS of Rs 282.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 22,248.9, stands at 54.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 11.3 times, while the price to sales ratio stands at 6.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 48.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 3,033.7 3,591.3
TTM Earnings per share Rs 282.5 405.9
Diluted earnings per share Rs 282.5 405.9
Price to Cash Flow x 56.3 48.7
TTM P/E ratio x 59.7 54.8
Price / Book Value ratio x 10.0 10.5
Market Cap Rs m 141,950 182,657
Dividends per share (Unadj.) Rs 32.0 45.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HONEYWELL AUTOMATION

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.3x during FY19, from 2.1x during FY18. 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 86.5x during FY19, from 101.3x during FY18. 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 20.6% during FY19, from 17.7% during FY19. 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 32.2% during FY19, from 27.2% during FY18. 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 13.0% during FY19, from 8.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.1 2.3
Debtors’ Days Days 805 716
Interest coverage x 101.3 86.5
Debt to equity ratio x 0.0 0.0
Return on assets % 8.2 13.0
Return on equity % 17.7 20.6
Return on capital employed % 27.2 32.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 16,861.9 to Rs 22,248.9, registering a gain of Rs 5,387.0 or around 31.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of HONEYWELL AUTOMATION?

HONEYWELL AUTOMATION currently trades at Rs 38,650.9 per share. You can check out the latest share price performance of HONEYWELL AUTOMATION here...

What was the revenue of HONEYWELL AUTOMATION in FY19? How does it compare to earlier years?

The revenues of HONEYWELL AUTOMATION stood at Rs 32,693 m in FY19, which was up 20.4% compared to Rs 27,157 m reported in FY18.

HONEYWELL AUTOMATION's revenue has grown from Rs 21,833 m in FY16 to Rs 32,693 m in FY19.

Over the past 4 years, the revenue of HONEYWELL AUTOMATION has grown at a CAGR of 14.4%.

What was the net profit of HONEYWELL AUTOMATION in FY19? How does it compare to earlier years?

The net profit of HONEYWELL AUTOMATION stood at Rs 3,588 m in FY19, which was up 43.7% compared to Rs 2,497 m reported in FY18.

This compares to a net profit of Rs 1,695 m in FY17 and a net profit of Rs 1,412 m in FY16.

Over the past 4 years, HONEYWELL AUTOMATION net profit has grown at a CAGR of 36.5%.

What does the cash flow statement of HONEYWELL AUTOMATION reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of HONEYWELL AUTOMATION reveals:

  • Cash flow from operations increased in FY19 and stood at Rs 3,118 m as compared to Rs 2,629 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -4,458 m as compared to Rs -1,742 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -341 m as compared to Rs -106 m in FY18.

Here's the cash flow statement of HONEYWELL AUTOMATION for the past 4 years.

(Rs m)FY16FY17FY18FY19
From Operations1,6642,1522,6293,118
From Investments462-846-1,742-4,458
From Financial Activity-133-106-106-341
Net Cashflow1,9931,195800-1,655

What does the Key Ratio analysis of HONEYWELL AUTOMATION reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of HONEYWELL AUTOMATION reveals:

  • Operating profit margins witnessed a fall and down at 15.2% in FY19 as against 13.7% in FY18.
  • Net profit margins grew from 9.3% in FY18 to 11.3% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of HONEYWELL AUTOMATION for the past 4 years.

 FY16FY17FY18FY19
Operating Profit Margin (%)10.012.013.715.2
Net Profit Margin (%)6.67.19.311.3
Debt to Equity Ratio (x)0.00.00.00.0

Read: Latest Annual Report Analysis of HONEYWELL AUTOMATION

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