Johnson Controls - Hitachi Air Conditioning India Limited — Results, 07-03-2025: Reply to Clarification- Financial results

**Johnson Controls-Hitachi Air Conditioning India Limited Financial Summary:**

Johnson Controls-Hitachi Air Conditioning India Limited has announced a board meeting on February 11, 2025, to review its unaudited financial results for the quarter and nine months ended December 31, 2024.

Total revenue from operations reached ₹4,316.5 crore, reflecting a robust growth of 8.9% compared to the previous quarter's revenue of ₹3,962.8 crore. Drivers of this growth likely include increased demand as seasonal trends favor air conditioning products and improvements in market penetration.

Net loss for the period was ₹33.4 crore, a significant reduction from the loss of ₹300.5 crore reported in the same quarter last year. The calculated EPS stands at a loss of ₹1.2, down from a loss of ₹10.0 in the previous year.

Operational costs totaled ₹4,397.2 crore, virtually flat from ₹4,429.2 crore in the previous quarter. Notably, costs of materials consumed surged to ₹4,872.7 crore, a reflection of rising input costs and potential operational inefficiencies impacting margin control.

The balance sheet showcases a total asset position of ₹16,676 crore with total liabilities at ₹10,816.2 crore, highlighting a manageable debt level that supports their liquidity and operational capabilities.

Strategically, the company is focusing on cost management efficiency while looking to capitalize on seasonally increasing demand. With the air conditioning sector's inherent cyclicity, market sentiment remains cautiously optimistic.

Given the recent performance, a hold position is advised, pending further improvements in revenue stability and operational efficiencies. Factors to monitor include input costs and adjustments in marketing strategies during the high-demand season.