May 13 (Reuters) - Honeywell Automation India
reported a fall in fourth-quarter profit on Tuesday as rising
expenses outpaced revenue growth.
Profit at the Indian subsidiary of U.S. conglomerate
Honeywell International ( HON ) fell 5.6% year-on-year to 1.4
billion rupees ($16.4 million) for the quarter ended March 31.
The company provides building automation solutions to
industrial clients and designs emission-curbing and energy
transition products.
Capital goods companies in India are currently facing
challenges due to weakened infrastructure demand, with
government spending, which had increased ahead of the 2024
national elections, now slowing down.
However, execution of existing projects helped boost
Honeywell's ( HON ) revenue.
Honeywell Automation's revenue from operations rose 17.2% to
11.15 billion rupees but did not offset the 22% rise in
expenses.
Total expenses stood at 9.71 billion rupees due to a 44.2%
increase in cost of materials consumed, which constitutes more
than half of the total expenses.
The company does not provide a breakdown of its revenue
distribution or discloses which specific raw materials it
consumes.
Honeywell International ( HON ) reported a 1% rise in its
March-quarter net income, on April 29.
The company's stock, one of the most expensive in India,
closed 1.7% higher to 35,815 rupees, ahead of the results.
($1 = 85.3100 Indian rupees)