JOHNSON CONTROLS HITACHI 2023-24 Annual Report Analysis

Mon, 2 Sep

JOHNSON CONTROLS HITACHI has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

JOHNSON CONTROLS HITACHI Income Statement Analysis

• Operating income during the year fell 19.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.5% in FY24 as against 1.4% in FY23.
• Depreciation charges decreased by 14.5% and finance costs increased by 121.0% YoY, respectively.
• Other income declined by 16.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3.4% in FY23 to 3.9% in FY24.

JOHNSON CONTROLS HITACHI Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,844	19,187	-19.5%
Other income	Rs m	122	101	-16.8%
Total Revenues	Rs m	23,966	19,288	-19.5%
Gross profit	Rs m	-346	-281	NA
Depreciation	Rs m	753	644	-14.5%
Interest	Rs m	75	166	121.0%
Profit before tax	Rs m	-1,052	-990	NA
Tax	Rs m	-231	-233	NA
Profit after tax	Rs m	-821	-757	NA
Gross profit margin	%	-1.4	-1.5
Effective tax rate	%	21.9	23.5
Net profit margin	%	-3.4	-3.9

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JOHNSON CONTROLS HITACHI Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 10 billion as compared to Rs 10 billion in FY23, thereby witnessing an decrease of -4.9%.
• Current assets fell 10% and stood at Rs 12 billion, while fixed assets fell 24% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 20 billion during FY23, thereby witnessing a fall of 15%.

JOHNSON CONTROLS HITACHI Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,592	5,830	-11.6
Current Liabilities	Rs m	10,178	9,683	-4.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,923	16,892	-15.2
Current assets	Rs m	12,989	11,627	-10.5
Fixed Assets	Rs m	6,934	5,265	-24.1
Total Assets	Rs m	19,923	16,892	-15.2

JOHNSON CONTROLS HITACHI Cash Flow Statement Analysis

• JOHNSON CONTROLS HITACHI's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -322 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 499 million from the Rs -85 million net cash flows seen during FY23.

JOHNSON CONTROLS HITACHI Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-308	2,544	-
Cash Flow from Investing Activities	Rs m	-431	-322	-
Cash Flow from Financing Activities	Rs m	655	-1,723	-
Net Cash Flow	Rs m	-85	499	-

Current Valuations for JOHNSON CONTROLS HITACHI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -27.8, an improvement from the EPS of Rs -30.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,984.6, stands at 3,721.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.3 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at -279.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	877.0	705.7
TTM Earnings per share	Rs	-30.2	-27.8
Diluted earnings per share	Rs	-30.2	-27.8
Price to Cash Flow	x	-402.9	-279.0
TTM P/E ratio	x	-33.7	3,721.5
Price / Book Value ratio	x	6.8	5.4
Market Cap	Rs m	44,539	31,696
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for JOHNSON CONTROLS HITACHI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at -4.9x during FY24, from -13.0x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at -13.0% during FY24, from -12.5% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at -14.1% during FY24, from -14.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at -3.5% during FY24, from -3.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	1.2
Debtors’ Days	Days	49	72
Interest coverage	x	-13.0	-4.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-3.7	-3.5
Return on equity	%	-12.5	-13.0
Return on capital employed	%	-14.8	-14.1

To see how JOHNSON CONTROLS HITACHI has performed over the last 5 years, please visit here.

JOHNSON CONTROLS HITACHI Share Price Performance

Over the last one year, JOHNSON CONTROLS HITACHI share price has moved up from Rs 1,312.9 to Rs 1,984.6, registering a gain of Rs 671.7 or around 51.2%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 63,255.6 (down 0.5%). Over the last one year it has moved up from 44,678.3 to 63,255.6, a gain of 18,577 points (up 41.6%).

Overall, the S&P BSE SENSEX is up 27.0% over the year.

(To know more, check out historical annual results for JOHNSON CONTROLS HITACHI and quarterly results for JOHNSON CONTROLS HITACHI)