Johnson Controls Hitachi Air
Johnson Controls – Hitachi Air Conditioning India, which was previously recognized as Hitachi Home, posted a very poor set of numbers for Q2FY17. Total income dropped 16% (YoY) at Rs.289 crore and the company ended the quarter with a loss of Rs.5.35 crore , down from the loss of Rs.11 crore in previous Q2 but worse off when compared to the net profit of Rs.69 crore in Q1FY17.
Higher costs, led by a 43% surge in raw material costs did it in. The company has managed to bring down its borrowings significantly from Rs.133 crore to Rs.2 crore.
The good news here is that it ended H1FY17 with a net profit at Rs.64 crore v/s net profit of Rs.50 crore in FY16 – this is thanks to Rs.69 crore net profit it posted in Q1FY17. The company is debt free and its cash balance has swollen from Rs.4 crore to Rs.43 crore. Equity is at Rs.27.19 crore and annualized EPS stands at Rs.47 (FV of Rs.10). Reserve stands at Rs.331 crore. Promoters stake stands at 74.25%.
Seasonally, Q2 and Q3 are worse for the company and more so after the demonetization. Thus one can expected Q3 numbers to also remain bad.