Honeywell Automation's impressive performance in FY23, along with its strategic focus on the domestic market and its strong order visibility in key sectors, positions the company for sustainable growth and success in the foreseeable future.

In a recent interview with CNBC-TV18, Ashish Gaikwad, Managing Director of Honeywell Automation, expressed the company's strong determination to achieve a double digit growth rate in the range of 10-12 percent for FY24.

“We would normally want to target about 2 times that of GDP growth,” he said.

This ambitious target reflects Honeywell Automation's confidence in their ability to capitalise on emerging opportunities and drive significant business expansion.

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Highlighting their stellar performance in the previous fiscal year, Gaikwad mentioned that the company experienced substantial growth in both orders and revenues. On a year-on-year basis, orders witnessed a remarkable 12 percent increase, while revenues surged by an impressive 17 percent.

“We are happy with the performance that we have given in the last fiscal that we have closed, we have grown about 12 percent or so in orders and also 17 percent revenue growth year on year (YoY),” he said.

These figures showcase Honeywell Automation's strong market presence and their ability to consistently deliver exceptional results.

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Discussing the company's financials, Gaikwad revealed that the gross margin for the year ranged between 47 percent and 50 percent, which he attributed to the business mix. This indicates that Honeywell Automation has effectively managed its resources and optimized its operations to maintain healthy profit margins.

Moreover, Gaikwad expressed optimism regarding the domestic capital goods market, emphasizing that it is gradually opening up. This presents a significant opportunity for Honeywell Automation to expand its footprint in the domestic market and capture a larger share of the growing demand for capital goods.

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Gaikwad also shed light on the company's order mix, mentioning that it currently favors the domestic market with a ratio of 60:40. However, as Honeywell Automation continues to drive its domestic business and capitalize on emerging sectors, such as life sciences and oil exploration in infrastructure, the order mix ratio is expected to shift further in favor of the domestic market.

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(Edited by : C H Unnikrishnan)