Shares of Honeywell Automation India Ltd rallied as much as 10 percent in trade on Thursday after the company, engaged in the business of automation and control systems, announced its March quarter results and declared a dividend as well.
Operating profit or EBITDA saw growth of nearly 60 percent year-on-year, EBITDA margin expanded to 16.3 percent from 13.1 percent during the same period last year.
Additionally, the company also declared a final dividend of Rs 95 per share of face value of Rs 10 each for the financial year 2023. That implies a dividend payout of 19 percent.
The said dividend, if declared at the ensuing annual general meeting of the company on August 11, will be paid on August 25.
Equity research firm Nomura said that Honeywell Automation’s earnings per share (EPS) beat estimates by 5 percent, though revenue growth trailed their expectations.
Financial services firm Nuvama observed that cost inflation, chip shortage, supply issues etc. are starting to ease for Honeywell Automation.
The company saw better execution in financial year 2023, but margins remained subdued at around 15 percent, it said.
Nuvama also mentioned that exports were yet to see strong revival from the previous levels seen in between financial year 2018-2021.
Shares of Honeywell Automation ended 7.3 percent higher at Rs 40,206.
