Honeywell
For third quarter ended 30th Sept 2013, the company had a much higher operating cost, up 7% (YoY) and this ate away most of the revenue, reducing the net profit. The company had earned a net revenue of Rs.436 crore, up 7% and operating cost, led by raw material cost ate away 98% of the revenue earned v/s 93% last year, the company ended Q3CY13 with a the net profit at Rs.14 crore, down 33%. The other income of Rs.8 crore, which is up almost 4 times helped some up the bottomline to some extent. Tax outgo was also lower, down 43%.
The company was riding high till some months on hopes of delisting, which the company firmly squashed, stating that it intends to stay listed. Last Sept, the foreign parent currently held 81.24% stake and as per SEBI norms, has since then brought it down to 75%. Its net profit at end of 9MCY13 was at Rs.57 crore and CY12 had a net profit of Rs.85 crore. The company, typical of MNCs, is debt free and has been operating in the Indian geography for over 28 years now. The company is sitting on huge reserves of Rs.670 crore, which is over 75 times the equity capital of Rs.8.84 crore! Despite sitting on so much, the company is not announcing any new plans for expansion or even acquisitions. Compared to the money in hand, it remains extremely conservative distributor, it has been declaring a 100% dividend since 2007, though it has no history of a bonus at all.