Johnson Controls Hitachi Air

The one big thing that happened in Q2FY16 was the change in ownership following the global share structure rejig. Till end of Q1FY16, this company was a subsidiary of Hitachi Appliances which held 72.41% stake while Hitachi India held 1.84%. But in Q2, Hitachi Appliances divested its stake into a global JV with Johnson Controls (JC) and this gave JC a complete ownership in Hitachi Home. So as on 30th Sept 2015, US based Johnson Controls holds 74.25% stake. Thus from a Japanese subsidiary, Hitachi Home is now a US subsidiary.

All this rejig and seasonal factors impacted the performance. With net sales dropping 1% (YoY) at Rs.248 crore, costs rising 8% despite a 51% drop in raw material expenses, the company ended the quarter with a net loss of Rs.11 crore v/s net profit of Rs.9 crore in previous Q1 and a whopping net profit of Rs.46 crore in sequential quarter. QoQ is not comparable as seasonally, Q1 and Q4 are its best.  Net profit at end of H1FY16 was at Rs.36 crore v/s Rs.52 crore in previous H1.