Honeywell Automation India’s profit growth slows on higher expenses

BENGALURU (Reuters) – Engineering firm Honeywell Automation India on Monday reported a marginal 3.4% rise in second-quarter profit, as a rise in expenses outpaced revenue growth.

Profit at the Indian unit of U.S.-based Honeywell International rose to 1.22 billion rupees ($14.7 million) for the three months ended Sept. 30, from 1.18 billion rupees a year ago.

Quarterly revenue was up 39% at 11.04 billion rupees, however, a 44% rise in its total expenses, in line with the trend seen in the previous three quarters, weighed on profit.

The company, which provides building automation solutions to industrial clients and designs emission-curbing and energy transition products, has benefited from an infrastructure spending-led boost to its order book.

The stock, one of India’s costliest, closed up 0.3% at 37,265.95 rupees ahead of the results and was down 10.6% year to date.

($1 = 83.2242 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman and Shweta Agarwal)