Honeywell

The company posted a good set of numbers for Q4Fy16. For the quarterly numbers, a higher topline helped the company end the quarter with a 4 times rise in net profit at Rs.28 crore. This was on a 30% (YoY) rise in net sales at Rs.564 crore.  Costs rose 28% yet operating profit was up by a very good 85% at Rs.37 crore. Tax outgo was up 2.5 times at Rs.15 crore.

The company ended FY16 with a net profit of Rs.138 crore, up 21% and this was despite a 9% drop in net sales at Rs.2187 crore. Thanks to the 10% drop in costs, the company could bolster its bottomline.

The company remains debt free. Its equity is at Rs.8.84 crore and EPS for the fiscal is at Rs.156 (FV of Rs.10/share). The reserves remains very good at Rs.1001 crore and cash is healthy at Rs.373 crore. For long, it has been a bonus candidate and that is not forthcoming though it has been liberal with bonus – it declared 100% dividend for FY16. The company is also not using the money to plough it back for organic or inorganic growth. Promoters stake is at 75%.