Hitachi Home & Life Solutions Posted Good Result

Hitachi Home & Life Solutions (India) is an Indian based company incorporated in the year 1984. The company principally engaged in the business of manufacturing and selling of Air Conditioners (AC). The company's business segment is cooling product for comfort and commercial uses. Company's manufactures various kinds of products including Room Air-conditioners and Commercial Air-conditioners, and are into trading of VRF Systems, Rooftops, Chillers, and Refrigerators.

The company recently announced its fourth quarter and annual standalone results, the total revenue of hitachi stood up at Rs 1573 crore compared to Rs 1100 crore, up by 43.02 per cent in FY15. The Company predominantly operates in air conditioning business which is seasonal in nature so Major sales / income from operations is generated during the first and last quarter of every accounting year.

The total expenditure of the company also increased to Rs 1471 crore than Rs 1082 crore more by 35.9 per cent Y-O-Y basis due to increase in consumption of raw materials by 42.68 per cent , purchase of traded goods by 88.8 per cent, employees cost by 39.01 per cent, depreciation by 19.61 per cent, and other expenses by 32.19 per cent, the depreciation increased due to increase in fixed assets.

The EBITDA increased to Rs 138 crore compared to Rs 48 crore rose by 190.27 per cent, EBITDA margin increased by 445 basis points to 8.78 per cent.

The company has given outstanding performance this year compared to last five years. The net profit of Hitachi rose by 865.96 per cent to Rs 78 crores in Fy15 compared to 8 crores in last year FY14 because of increased in other income of the company by 23.83 per cent and decrease in interest expenses by 30.88 per cent. But during the same period the tax expenses increased by 608.84 per cent.

The fourth quarter FY15 performance of the company is also good because the company mostly earns in quarter 2 and quarter 4. The shareholding pattern of the company changed in march quarter Fy15, the FII holdings increased by 6 basis points to 1.44 per cent and DII holdings increased by 139 basis points to 6.16 per cent.