HONAUT - Honeywell Auto

📊 NSE: HONAUT 🏢 Electronics - Components 📅 Last Updated: 12/14/2025 7:47

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 3.2% YoY to INR 4,189.6 Cr. The domestic segment registered revenue of INR 2,427.1 Cr, representing a 0.4% growth YoY. The export segment grew 7.2% YoY to INR 1,754.6 Cr.

Geographic Revenue Split

The revenue mix for FY 2024-25 was 58% Domestic (India) and 42% Exports. This compares to a 60% Domestic and 40% Export split in the previous year.

Profitability Margins

Net income was 12.5% of sales (INR 523.6 Cr) compared to 12.4% in the previous year. Cost of goods sold (COGS) increased to 60.8% of sales from 57.0% in the prior year, indicating rising input costs.

EBITDA Margin

Profit before tax (PBT) for FY 2024-25 was INR 705.6 Cr, representing a PBT margin of 16.8%. For the half-year ended September 30, 2025, PBT was INR 328.7 Cr, down 3.1% from INR 339.4 Cr in the previous period.

Capital Expenditure

Property, Plant and Equipment (PPE) stood at INR 90.8 Cr as of September 30, 2025, down from INR 103.2 Cr in March 2025. Capital work-in-progress was INR 5.7 Cr.

Credit Rating & Borrowing

The company maintains a strong net cash position with cash and cash equivalents of INR 3,061.3 Cr as of September 30, 2025. Finance costs were minimal at INR 6.7 Cr for FY 2024-25.

⚙️ Operational Drivers

Raw Materials

Specific raw material names are not disclosed, but 'Purchases of stock in trade' accounted for INR 428 Cr in FY 2024-25. COGS represents 60.8% of total sales.

Key Suppliers

A significant portion of procurement and business relationships are maintained with Honeywell affiliates, including the ultimate holding company.

Raw Material Costs

Cost of goods sold was 60.8% of sales (INR 2,547.3 Cr) in FY 2024-25, up from 57.0% in the previous year due to inflationary pressures.

📈 Strategic Growth

Expected Growth Rate

14.10%

Growth Strategy

Growth is driven by the 'India Automation Megatrend' strategy, focusing on Industrial and Building Automation SBGs. The company is leveraging a 14.1% YoY increase in its New Orders book and focusing on domestic business, which is growing faster than exports in terms of strategic priority.

Products & Services

Automation and control systems, industrial automation solutions, and building automation technologies.

Brand Portfolio

Honeywell

New Products/Services

Portfolio is aligned to the global Honeywell mega trend of Automation, specifically within Industrial and Building Automation segments.

Market Expansion

The company is focusing on the domestic Indian market, which currently contributes 58% of revenue, while maintaining a strong export presence (42%).

Strategic Alliances

The company operates as a subsidiary of Honeywell International Inc., utilizing its global technology and brand.

🌍 External Factors

Industry Trends

The industry is shifting toward the 'Automation Megatrend'. Honeywell is positioning itself within Industrial and Building Automation to capture growth as India's industrial sector evolves.

Competitive Landscape

Highly competitive environment featuring both local startups and established global players, leading to significant pricing pressure.

Competitive Moat

Moat is derived from the global Honeywell brand, advanced technology in automation, and a strong relationship with the parent company, which provides a competitive edge in complex project execution.

Macro Economic Sensitivity

Sensitive to India's GDP growth and consumer price inflation. Slower GDP growth and elevated energy prices are noted as potential hindrances to industrial output in 2025.

Consumer Behavior

Industrial demand is shifting toward automated and efficient building and industrial solutions to counter rising energy and labor costs.

Geopolitical Risks

Global supply chain disruptions and trade barriers are identified as risks that could delay production and impact material availability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by Section 188 of the Companies Act and Regulation 23 of the SEBI Listing Regulations, particularly regarding related party transactions with Honeywell affiliates.