Honeywell Automation India’s profit growth slows as expenses climb

BENGALURU (Reuters) – Engineering firm Honeywell Automation India reported its slowest profit growth in five quarters on Thursday, as expenses, led by the rising costs, outpaced revenue.

The Indian arm of U.S. conglomerate Honeywell International Inc reported profit grew a marginal 1.4% to 1.03 billion Indian rupees ($12.46 million) in the first quarter ended June 30.

Revenue rose nearly 19% to 9.32 billion rupees in the June quarter, slower than the 27.2% rise in revenue in the quarter ended March 31.

The growth in total costs, however, remained roughly the same sequentially – expenses rose 22% this quarter, averaging around 20% in the past three quarters.

As a result, the Pune-based company’s earnings before interest, taxes, depreciation and amortisation margin fell to 12.9% compared with 16.3% last quarter and 15.5% in the year-earlier quarter.

The marginal rise in profit came from a 13% rise in other income. However, the company did not specify what constituted other income.

Shares of Honeywell Automation India closed 1.53% higher at 42,484.05 rupees, ahead of results.

($1 = 82.6380 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru; Editing by Janane Venkatraman)