Honeywell Automation India’s posts second straight quarterly profit fall

Engineering firm Honeywell Automation India reported a second consecutive quarterly profit fall on Friday, as its expenses rose.

Profit at the Indian arm of U.S. conglomerate Honeywell International fell 8.7% year-on-year to 1.25 billion rupees ($14.3 million) in the quarter ended June 30.

Honeywell Automation, which provides smart building systems and clean-tech solutions, benefited from increased demand for automation, which boosted its revenue by 23.2% to 11.83 billion rupees.

However, its expenses rose 28.8% to 10.57 billion rupees, weighing on the bottomline.

Honeywell’s India unit posts smaller fourth-quarter profit as costs surge

Cost of materials consumed, which constitutes more than half of the total expenses, jumped more than 50%.

The company does not disclose details about its revenue segmentation or which raw materials it uses.

Honeywell Automation India’s stock, one of the country’s most expensive, closed 1.2% higher at 39,235 rupees ahead of the results.

Its parent’s June-quarter net income was almost at $1.57 billion, it reported on July 24.