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Honeywell Automation Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Honeywell Automation India Limited (HAIL) was started in the year 1987 as a JV between Tata and Honeywell. It was known as Tata Honeywell Limited each holding 39.54% stake. Later in 2004. Honeywell Asia Pacific Inc. bought Tata's stake and the name was changed to Honeywell Automation India Limited. HAIL is engaged primarily in the business of Automation & Control systems on turnkey basis and others.

  • India's economy contracted in FY 2020-21 due to COVID-19 but rebounded strongly in FY 2021-22 and FY 2022-23, growing at 7.2%. The Indian construction sector is expected to remain steady in the years ahead.

  • The overall revenue from operations in the current year was ₹3,44,759 Lakhs, showing a growth of 16.9% compared to the previous year. The domestic segment revenue increased to ₹2,00,531 Lakhs, reflecting a growth of 9.7%, while revenue from exports reached ₹1,42,653 Lakhs, with a significant growth of 28.7%. Additionally, new orders from Non-Honeywell customers increased by 11.9% year on year.

  • The company achieved a profit after tax of ₹43,801 Lakhs with a return of 12.8% on sales (compared to 11.5% in the previous year). The cost of goods sold was 53.2% of sales (52.4% in the previous year). Net cash flow from operations was ₹40,988 Lakhs, representing 93.6% of net profit (compared to 77.7% in the previous year). The company will continue to focus on working capital performance and positive operating cash flows.

  • The recently announced Union Budget 2023, infrastructure investment received significant emphasis. Capital expenditure, which is allocated for investments in infrastructure projects, has reached 22% of the total expenditure. This allocation represents the highest share in the last 15 years, highlighting the government's commitment to prioritize and boost infrastructure development.

  • The Process Solutions business of Honeywell has performed well despite global supply chain challenges, with significant gains in strategic customer and life sciences engagements. It offers leading technologies and lifecycle services for industries like oil and gas, refining, and pharmaceuticals, and aims to focus on digitization, sustainability, and growth in untapped markets.

  • The business will focus on core strategies, using commercial excellence levers for growth in existing products. It will also target growing verticals like Pharma, Healthcare, and Datacenter. New initiatives like Connected Buildings and upcoming product launches will support growth in an evolving market.

  • Safety Sensing Technologies (SST) business serves multiple industries like transportation, aerospace, healthcare, and more. It added new product offerings to cater to trends in Electric Vehicles and Green Hydrogen. SST prioritized efficient operations, customer support, and localized manufacturing, leading to improved sales productivity and customer satisfaction.

  • Global Engineering Services supports engineering and innovation in Process Automation and Building Automation businesses by providing various services like basic and detailed engineering, application software development, project management, and solution consulting. It serves diverse verticals and strives for high-quality results through continuous improvement and customer-centric strategies. The business has expanded globally, investing in talent development to support Honeywell's growth agenda in strategic business units.

  • The company generates sales and profits from direct customers and Honeywell International Inc. The ability to maintain or grow direct business depends on macro-economic factors, while business with Honeywell relies on performance factors. Geopolitical risks and CoVID-19 variants pose potential challenges. An aggressive competitive landscape and changes in Honeywell's strategies can impact revenue and profits.

  • The company's export revenue mix increased, and overall revenue improved by 16.9%. Net income was 12.8% of sales, up from 11.5% in the previous year. However, challenges like increased competition, supply chain disruptions, and inflation persist. The company is addressing these concerns through operational excellence, productivity improvements, and cost rationalization initiatives to achieve profitable growth.



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