Johnson Controls -Hitachi Air Conditioni

Standalone Profit & Loss account in Rs. Cr.

Mar-16 Mar-17 Mar-18
12 mths 12 mths 12 mths
INCOME
Revenue From Operations [Gross] 1,802.07 2,085.78 2,242.59
Less: Excise/Sevice Tax/Other Levies 157.67 181.25 72.88
Revenue From Operations [Net] 1,644.40 1,904.53 2,169.71
Other Operating Revenues 15.14 12.77 15.68
Total Operating Revenues 1,659.53 1,917.30 2,185.39
Other Income 1.78 6.78 7.39
Total Revenue 1,661.32 1,924.08 2,192.78
EXPENSES
Cost Of Materials Consumed 746.98 704.67 842.5
Purchase Of Stock-In Trade 330.9 454.07 557.57
Changes In Inventories Of FG,WIP And
-61.55 61.1 17.57
Stock-In Trade
Employee Benefit Expenses 110.98 122.23 140.98
Finance Costs 10.12 4.39 1.98
Depreciation And Amortisation Expenses 45.55 51.85 52.92
Other Expenses 409.5 407.47 427.9
Total Expenses 1,592.48 1,805.78 2,041.42

Profit/Loss Before Exceptional,

68.84 118.3 151.36
ExtraOrdinary Items And Tax
Exceptional Items 0 0 0
Profit/Loss Before Tax 68.84 118.3 151.36
Tax Expenses-Continued Operations
Current Tax 25.69 41.24 56.97
Deferred Tax -5.94 -4.27 -5.76

Total Tax Expenses 18.86 36.97 51.21

Profit/Loss After Tax And Before
49.98 81.33 100.15
ExtraOrdinary Items

Profit/Loss From Continuing Operations 49.98 81.33 100.15

Profit/Loss For The Period 49.98 81.33 100.15

Mar-16 Mar-17 Mar-18

12 mths 12 mths 12 mths
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 18.38 29.9 36.8
Diluted EPS (Rs.) 18.38 29.9 36.8
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS
Imported Raw Materials 392.78 0 0
Indigenous Raw Materials 354.19 0 0
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 1.2 0 0
Indigenous Stores And Spares 0.84 0 0
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 4.08 4.91 4.91
Tax On Dividend 0.83 0 0
Equity Dividend Rate (%) 15 15 15

AMOUNT IN MILLION RUPEES Mar-16 Mar-17 Mar-18

Sales 1,959.74 2,267.03 2,315.47
Employee Cost 110.98 122.23 140.98
EBITDA 114.39 170.15 204.28
EBIT 68.84 118.30 151.36
PBT 68.84 118.3 151.36
PAT 49.98 81.33 100.15

Growth (%, YoY) & (%QoQ)

Sales 15.68% 2.14%
Employee Cost 10.14% 15.34%
EBITDA 48.75% 20.06%
EBIT 71.85% 27.95%
PBT 71.85% 27.95%
PAT 62.73% 23.14%

Margin over Total Operating Revenue

Sales 1.18 1.18 1.06
Employee Cost 0.07 0.06 0.06
EBITDA 0.07 0.09 0.09
EBIT 0.04 0.06 0.07
PBT 0.04 0.06 0.07
PAT 0.03 0.04 0.05

Working Capital 321.73 298.16 360.56

Johnson Controls -Hitachi Air Conditioning India

Mar-19 Mar-20
12 mths 12 mths

2,223.07 2,197.37
0 0 2016 2017 2018
2,223.07 2,197.37 cogs 994.91 981.74 1130.45
18.23 0
2,241.30 2,197.37
15.42 8.15
2,256.72 2,205.52

1,042.27 1,186.59
504.07 377.79

-102.45 -167.02

165.15 174.54 Total No of Shares(In Lakhs) 2.719

2.69 5.02 Market Capitalization 5558.22
44.16 56.29 Current Share Price
468.46 453.25 2016 1135.7
2,124.35 2,086.46 2017 1811.3
2018 2510.25
132.37 119.06 2019
2061.9
0 -0.75 2020 2140.15
132.37 118.31

49.15 34.78
-2.72 0

46.43 34.78

85.94 83.53

85.94 83.53

85.94 83.53

Mar-19 Mar-20
12 mths 12 mths

31.6 30.7
31.6 30.7
 0 0
0 0

0 0
0 0

4.92 0 0
0 0 0
15 0 0

Mar-19 Mar-20
2,223.07 2,197.37
165.15 174.54
176.53 175.35
132.37 119.06
132.37 118.31
85.94 83.53

AVERAGE
-3.99% -1.16% 3.17%
17.14% 5.69% 12.08%
-13.58% -0.67% 13.64%
-12.55% -10.06% 19.30%
-12.55% -10.62% 19.16%
-14.19% -2.80% 17.22%

0.99 1.00
0.07 0.08
0.08 0.08
0.06 0.05
0.06 0.05
0.04 0.04

491.77 432.05
 2019 2020
1338.59 1467.08
Johnson Controls -Hitachi Air
Conditioning India

Standalone Balance Sheet in Rs. Cr.

Mar-16 Mar-17 Mar-18 Mar-19 Mar 20

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 27.19 27.19 27.19 27.19 27.19
Total Share Capital 27.19 27.19 27.19 27.19 27.19
Reserves and Surplus 330.76 413.04 508.01 585.8 661.33
Total Reserves and Surplus 330.76 413.04 508.01 585.8 661.33
Total Shareholders Funds 357.95 440.23 535.2 612.99 688.52

NON-CURRENT LIABILITIES
Long Term Borrowings 0 0 0 0 0
Deferred Tax Liabilities [Net] 0 0 0 0 0
Other Long Term Liabilities 0.03 9.44 11.32 12.41 37.82
Long Term Provisions 33.28 34.03 37.63 49.93 59.2
Total Non-Current Liabilities 33.3 43.47 48.95 62.34 97.02

CURRENT LIABILITIES
Short Term Borrowings 132.79 59.52 12.66 189.62 158.72
Trade Payables 452.57 443.79 495.81 540.82 549.96
Other Current Liabilities 121.95 119 148.7 146.97 72.55
Short Term Provisions 10.93 14.51 14.78 15.03 17.3
Total Current Liabilities 718.25 636.82 671.95 892.44 798.53
Total Capital And Liabilities 1,109.50 1,120.52 1,256.10 1,567.77 1,584.07

ASSETS
NON-CURRENT ASSETS
Tangible Assets 237.59 234.3 222.18 215.66 407.24
Intangible Assets 27.81 21.86 20.82 15.33 0
Capital Work-In-Progress 0.76 1.49 1.58 94.13 0
Intangible Assets Under Development 0 2.64 0 0 0
Other Assets 0 1.2 1.27 1.24 0
Fixed Assets 266.15 261.49 245.85 326.36 407.24
Deferred Tax Assets [Net] 4.46 8.12 13.88 16.6 14.22
Long Term Loans And Advances 28.38 3.56 4.4 4.68 0
Other Non-Current Assets 0 32.78 27.6 35.75 52.15
Total Non-Current Assets 298.99 305.95 291.73 383.39 473.61

CURRENT ASSETS
Inventories 494.35 459.96 442.1 555.47 727.45
Trade Receivables 279.95 281.99 414.27 477.12 254.56
Cash And Cash Equivalents 4.16 23.62 35.81 29.85 17.93
Short Term Loans And Advances 27.8 2.08 1.45 1.02 1.3
OtherCurrentAssets 4.26 46.92 70.74 120.92 109.22
Total Current Assets 810.51 814.57 964.37 1,184.38 1,110.46
Total Assets 1,109.50 1,120.52 1,256.10 1,567.77 1,584.07
 RATIOS
Mar-16 Mar-17
12 mths 12 mths
Liquidity Ratios
Current Ratio = Current Asset/Current Liabilities 1.13 1.28
Quick Ratio = Liquid Assets/Current Liabilities 0.44 0.56
Liquid Assets = (Current Assets-(Inventory + Prepaid Expenses))

Solvency Ratios
Debt to Equity = Long Term Debt/Shareolder's Equity 0.00 0.02
Total Debt to Equity = Total Debt/Shareolder's Equity 0.37 0.14
Interest Coverage = EBIT/Interest 6.80 26.95

Leverage Ratios
Debt to Asset = Total Debt/Total Asset 0.12 0.05
Debt to Capital =Total Debt/(Total Debt + Total Equity) 0.37 0.14
Debt to EBIDTA == Total Debt/EBIDTA
Cost of Material Consumed + Purchases 1.16 0.35
Asset to Equity =Total
of StockAsset/Total
in Trade + Equity
20% of Changes in 3.10 2.55
Inventories
Efficiency of Fininshed Goods, work-in-
Ratios
progress and Stock-in-trade + 50% of
Inventory Turnover =Employees
COGS/Average
BenefitInventory
Cost + 50% of Other 1342.92
COGS (With Assumptions)
Average Period Inventory Expenses
Held = 365/ITR 0.27

Receivable Turnover =Net Sales/Average Debtors 5.91

Average Collection Period =365/RTR 61.73
Asset Turnover = Net Sales/Total Assets 1.50
Trade Paybles Turnover = Purchases/Average Trade Paybles 0.74
Average Payment Period = 365/TPR 494.37

Profitability Ratios
Gross Profit Ratio = Gross Profit/Net Sales 38.19 35.95
Net Profit Ratio = Net Profit/Net Sales 3.04 4.27
Operating Profit Ratio = EBIT/Net Sales 4.19 6.21
Interest Effiency =PBT/EBIT 100.00 100.00
Return on Equity =PAT/Total Shareholder's Equit 13.96 18.47
Return on
Return on Capital
Assets = PAT/Total Assets 4.50 7.26
Employeed = EBIT/Total Capital Employeed 17.59 24.46

Valuation Ratios
Earnings Per Share = Net Income/Total Shares Outstanding 18.38 29.9

P/E Ratio =MPS/EPS 302.41 185.89

 PAT 49.98 81.33

book value 131.64 161.90

P/B 8.63 11.19

EV/EBIDTA 1.15 0.95

EBIDTA 114.39 170.15

%sales growth 15.68%

 Mar-18 Mar-19 Mar-20
12 mths 12 mths 12 mths

1.44 1.33 1.39

0.78 0.70 0.48

0.02 0.02 0.05

0.02 0.31 0.23
76.44 49.21 23.72

0.01 0.12 0.10

0.02 0.31 0.23
0.06 1.07 0.91
2.35 2.56 2.30

1559.57 1609.98 1572.61

0.23 0.23 0.23

5.53 4.92 6.17

66.04 74.19 59.17
1.72 1.75 1.44
0.97 1.08 0.92
377.64 339.30 394.92

34.66 35.05 36.41

4.62 3.87 3.80
6.98 5.95 5.42
100.00 100.00 99.37
18.71 14.02 12.13
7.97 5.48 5.27
25.91 19.60 15.16

Total No of Shares(In Lakhs 2.719

36.8 31.6 30.7 Market Capitalization 5558.22
Current Share Price
151.04 175.89 181.05 2016 1135.7
 2017 1811.3
100.15 85.94 83.53 2018 2510.25
2019 2061.9
196.83 225.44 253.22 2020 2140.15

12.75 9.15 8.45

0.96 1.28 1.44

204.28 176.53 175.35

2.14% -3.99% -1.16%

COMPUTATION OF RATIOS

Liquidity Ratio Mar 16 Mar 17 Mar 18 Mar 19 Mar 20

Current Ratio 1.16 1.16 1.25 1.38 1.24

Quick Ratio 0.82 0.78 0.85 0.97 0.80

Leverage Ratio

Debt/ Equity Ratio 0.27 0.14 0.07 0.13 0.18

Interest Coverage Ratio 7.98 10.19 15.02 13.54 16.67

Profitability Ratio
%
Gross Margin 25.22 23.85 23.54 21.89 20.29
Net Margin 4.63 5.40 5.59 4.81 5.14
Return on Assets 12.10 10.74 10.34 8.84 8.80
Return on Equity 15.64 15.09 13.53 12.15 13.57
Return on Capital Employed 19.10 19.93 18.81 16.18 16.28

Turnover Ratio

Asset Turnover Ratio 1.69 1.32 1.24 1.22 1.21

Debtors Turnover Ratio 5.06 5.06 5.01 4.39 5.41
Creditor Turnover Ratio 2.41 2.41 2.16 2.15 2.19

Valuation Ratio

P/E Ratio 165.25 200.01 301.13 264.88 234.18

EPS 10.83 14.48 16.38 15.74 18.37
Book Value 69.21 95.96 121.04 129.52 135.33
Johnson Controls -Hitachi
Air Conditioning India

Standalone Quarterly Results in Rs. Cr.

Mar '19 Jun '19 Sep '19 Dec '19 Mar '20

Net Sales/Income from operations 665.45 951.91 376.59 435.96 432.91

Other Operating Income 0.00 0.00 0.00 0.00 0.00

GROWTH% 0.43 -0.60 0.16 -0.01

Total Income From Operations 665.45 951.91 376.59 435.96 432.91

EXPENDITURE
Consumption of Raw Materials 385.08 300.15 122.88 339.50 385.51
Purchase of Traded Goods 166.34 156.98 76.21 59.68 84.92
Increase/Decrease in Stocks -136.47 172.60 43.28 -134.57 -209.78
Power & Fuel -- -- -- -- --
Employees Cost 46.54 44.45 36.28 46.00 47.81
Depreciation 11.02 12.72 11.96 14.89 16.72
Other Expenses 126.71 167.04 95.97 92.97 97.27

TOTAL EXPENSES 599.22 853.94 386.58 418.47 422.45

EBIT 90.00 102.00 15.00 35.00 79.00

Interest 10.00 10.00 10.00 10.00 9.00
Tax 21.00 27.00 -7.00 0.00 7.00
Net Profit 62.00 64.00 12.00 24.00 62.00

AMOUNT IN MILLION RUPEES

Sales 665.45 951.91 376.59 435.96 432.91
Employee Cost 46.54 44.45 36.28 46.00 47.81
EBITDA 101.02 114.72 26.96 49.89 95.72
EBIT 90.00 102.00 15.00 35.00 79.00
PBT 83.00 92.00 5.00 25.00 70.00
PAT 62.00 65.00 12.00 25.00 63.00
Growth (%, YoY) & (%QoQ)
Sales 43.05% -60.44% 15.77% -0.70%
Employee Cost -4.49% -18.38% 26.79% 3.93%
EBITDA 13.56% -76.50% 85.05% 91.86%
EBIT 13.33% -85.29% 133.33% 125.71%
PBT 10.84% -94.57% 400.00% 180.00%
PAT 4.84% -81.54% 108.33% 152.00%

Margin over Total Operating Revenue

Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Employee Cost 6.99% 6.68% 5.45% 6.91% 7.18%
EBITDA 15.18% 17.24% 4.05% 7.50% 14.38%
EBIT 13.52% 15.33% 2.25% 5.26% 11.87%
PBT 12.47% 13.83% 0.75% 3.76% 10.52%
PAT 9.32% 9.77% 1.80% 3.76% 9.47%
Operating income 0.00% 0.00% 0.00% 0.00% 0.00%
Other income
Tax 3.16% 2.84% -1.86% 0.00% 1.62%

(Increase)/Decrease in stock/ sales -20.51% 18.13% 11.49% -30.87% -48.46%

Consumption of raw materials/sales 57.87% 31.53% 32.63% 77.87% 89.05%
Employee cost/sales 6.99% 4.67% 9.63% 10.55% 11.04%
Other expenditure/sales 19.04% 17.55% 25.48% 21.33% 22.47%
 FORECAST PERIOD

Jun '20 Sep'20E Dec'20E Mar'21E FY20E-21E

269.58 242.62 279.02 329.24

1120.46 <= FY 20-21 PROJECTED SALES
0.00 0.15 0.18
-0.38 -0.10 0.15 0.18

269.58 242.62 279.02 329.24

13.10 118.81 136.63 161.23

34.30
127.55 -9.26 -10.65 -12.56
--
44.01 23.95 27.54 32.50
13.08 13.29 13.50 13.75 <= Assuming
72.74 53.72 61.78 72.90

304.78 200.51 228.80 267.81

-25.00
10.00
-11.00
-23.00

269.58
44.01
-11.92
-25.00
-35.00
-24.00
 Average
-37.73% -8.01%
-7.95% -0.02%
-112.45% 0.30%
-131.65% 11.09%
-150.00% 69.26%
-138.10% 9.11%

100.00% 100.00%
6.61% 6.64%
-1.79% 9.43%
-3.76% 7.41%
-5.26% 6.01%
-3.61% 5.08%
0.00% 0.00%

-4.08% 0.28% <== not considering Mar-20 value as this is the outlier

AVERAGE
47.31% -3.82%
4.86% 48.97%
16.33% 9.87%
26.98% 22.14%
 P&L Assumptions

Actual Forecasted
Particulars 2016 2017 2018 2019 2020 Sep-20
Revenue 1,802.070 2,085.780 2,242.590 2,223.070 2,197.370 2,314.024
Revenue Growth % 15.74% 8% -1% -1% 5%

Other income 1.8 6.8 7.4 15.4 8.2 15.3

Growth % 281% 9% 109% -47% 88%

COGS 994.91 981.74 1,130.45 1,338.59 1,467.08 1294.301

% sales 55% 47% 50% 60% 67% 56%
Changes in inventories of
finished goods, work-in-
progress and stock-in-trade -61.55 61.1 17.57 -102.45 -167.02 -55.130
% of sales -3% 3% 1% -5% -8% -2.4%

Employee benefits expenses 110.98 122.23 140.98 165.15 174.54 155.859

% of Sales 6% 6% 6% 7% 8% 7%

Other Expenses 409.5 407.47 427.9 468.46 453.25 476.873

% of Sales 23% 20% 19% 21% 21% 21%

Interest Expense 10.12 4.39 1.98 2.69 5.02 5.599

% of sales 0.56% 0.21% 0.09% 0.12% 0.23% 0.24%

Depreciation and amortisation 45.55 51.85 52.92 44.16 56.29 55.173

% of Sales 3% 2% 2% 2% 3% 2%

Taxes 18.86 36.97 51.21 46.43 34.78 -9.965785

% of Ebt 8% 16% 26% 24% 70% 29%
Forecasted
Mar-21
2,436.870
5%

28.8
88%

1363.013
56%

-58.056
-2.4%

164.134
7%

502.189
21%

5.896
0.24%

58.10201
2%

-9.987361
17%
 PROJECTED P & L STATEMENT

Particulars 2016 2017 2018 2019

Revenue from Operations 1,802.070 2,085.780 2,242.590 2,223.070
Other Income 1.78 6.78 7.39 15.42
Total Income 1,803.850 2,092.560 2,249.980 2,238.490
Cost of Goods Sold 994.91 981.74 1,130.45 1,338.59
Gross Margin 808.940 1,110.820 1,119.526 899.905
Changes In Inventories Of FG,WIP And
Stock-In Trade -61.55 61.1 17.57 -102.45
Employee Benefit Expenses 110.98 122.23 140.98 165.15

Other expenses 409.5 407.47 427.9 468.46

EBITDA 350.010 520.020 533.076 368.745
Depreciation 45.55 51.85 52.92 44.16
EBIT 304.460 468.170 480.156 324.585
Tax 18.86 36.97 51.21 46.43
NOPAT 285.600 431.200 428.946 278.155
 2020 Sep-20 Mar-21
2,197.370 2,314.024 2,436.870
8.15 15.309972952772 28.760156051
2,205.520 2,329.334 2,465.630
1,467.08 1,294.30 1,363.01
738.439 1,035.033 1,102.618

-167.02 -55.12968843619 -58.05640386

174.54 155.85948741819 164.1337291

453.25 476.87256564083 502.18869446

277.669 457.430 494.352
56.29 55.17299529994 58.102009793
221.379 402.257 436.250
34.78 -9.965784858188 -9.987360634
186.599 412.223 446.237
Balance Sheet Assumption

Actual Forecasted
Particulars 2016 2017 2018 2019 2020 Sep-20

Trade Receivables 279.95 281.99 414.27 477.12 254.56 413.8775

Average collection Period 61.73 66.04 74.19 59.17 65.28

Inventories 494.35 459.96 442.1 555.47 727.45 0.855164

Days sales in inventory ratio 0.27 0.23 0.23 0.23 0.24

Tangible Assets
237.59 234.3 222.18 215.66 407.24 203.0751
% of Sales 8% 8% 7% 7% 14% 9%
Forecasted
Mar-21

435.8494
65.28

0.900563
0.24

213.856
9%
 Capex
Actual Forecasted
Particulars
Begining Plant, Property and 2016 2017 2018 2019 2020 Sep-20
Equipment and amortisation
Depreciation 237.59 234.3 222.18 215.66 407.24
expenses 45.55 51.85 52.92 44.16 56.29 55.173
Capex -55.14 -65.04 -50.68 135.29 -259.3379
Ending Plant, Property and
Equipment 237.59 234.3 222.18 215.66 407.24 203.0751

Calculation of Change in Working Capital

Particulars 2016 2017 2018 2019 2020 Sep-20
Trade Receivables 279.95 281.99 414.27 477.12 254.56 413.8775
Inventories 494.35 459.96 442.1 555.47 727.45 0.855164
Working Capital 774.3 741.95 856.37 1032.59 982.01 414.7327
Change in WC -32.35 114.42 176.22 -50.58 -567.2773
Forecasted
Mar-21
203.0751
58.10201
-47.32119

213.856

Mar-21
435.8494
0.900563
436.7499
22.01726
 CASH FLOW
Actual
Particulars 2016 2017 2018 2019 2020
NOPAT 285.6 431.2 428.946 278.155 186.599
Add: Depreciation 45.55 51.85 52.92 44.16 56.29
Gross Cash Flow 331.15 483.05 481.866 322.315 242.889
Less: CAPEX -55.14 -65.04 -50.68 135.29
Less: Change in WC -32.35 114.42 176.22 -50.58
Free Cash Flow 395.56 531.246 447.855 327.599
 Forecasted
Sep-20 Mar-21
412.22298 446.23693
55.172995 58.10201
467.39598 504.33894
-259.3379 -47.32119
-567.2773 22.017256
-359.2192 479.035
Calculation of DCF and Value per Share

WACC 12.33%
Terminal Growth 3.90%
1 2
Actual Forecasted
Particulars 2017 2018 2019 2020 Sep-20 Mar-21
Free Cash Flow 395.56 531.246 447.855 327.599 -359.2192 479.035
Terminal Value -4427.388 5904.121
Total Free Cash Flows -4786.607 6383.156
Discounting Factor 0.89 0.89
DCF -4260.08 5681.008

Total Value of Firm -4260.08 5681.008

Less: Value of Debt -2000.5 -2000.5
Value of Equity -3259.83 -1000.25 -2259.58 7681.508

Value per share

Starting Range(-10%)
Ending Range(+10%)
 7.68E+10
-3.26E+11