Thread by @money_theory

Johnson controls Hitachi Air Cond Ltd AR 2020 highlights :

Overview :

•The company is a JV of Johnson controls, USA and Hitachi Appliances, Japan & headquartered in Ahmedabad.

•It provides Room Air conditioning, Commercial air conditioning and other solutions.

Chairman's message :

•HVAC industry witnessed a cusp of evolution driven by technology & modernisation

•Nationwide heatwave & delayed monsoon helped the industry

•However, the industry faced major loss during peak business period starting March

Chairman's message :

•With a clear vision to remain relevant & become more valuable brand, company is geared up and working on various initiatives

•With innovation, creativity, focused approach & teamwork, co will emerge a leading AC player with sustained profitable growth

Global Development centre :

•Invested 140 cr to set up the centre (4th one) in Kadi, Gujarat which is spread across 12000 sq mt

•Centre has 120 engineers. Out of which 40 are experienced, 80 are new hires.

•To develop residential & packaging air conditioner products

Residential cooling solutions :

•Inverter Split air conditioners

•Fixed speed split air conditioners

•Window air conditioners

Commercial cooling solutions & Home appliances :

•Packaged Air conditioners, Chillers, Variable refrigerant flow, Space maker

•Refrigerators, Air purifiers

Five innovative technologies :

Revenue contribution :

Financial highlights :

•Revenues & profits de-grew as the business faced major loss during peak business period

Distribution network :

•5 regional offices

•21 branch offices

•10000 sales points

•1400 service providing partners

Business overview :

During the period Apr 19 - Feb 20

•19% growth in units

•Split AC segment grew by 21%

•Inverter AC grew by 34%

•VRF grew by 34%

•Packaged & telecom air conditioners witnessed decline

Exports:

•Ventured into exports biz four years back

•Exported to countries in South Asia & Middle east

•Started direct biz operations in Africa & south asian countries with the help of newly formed international sales department of JCH-IN

Growth drivers

•Government initiatives

•Increase in purchasing power, Increase in construction activities

•Smart city projects, High rise buildings, Shopping complexes, Malls, Hyper markets

•Demand for thermal comfort & healthy indoor environment

Risks :

•Uncertain period of pandemic

•Supply chain & raw material procurement

•Consumer demand

•Superior & sales after service

•Labour shortage

•Technological development

Key financial ratios :

Remuneration :

•Avg % increase in employee salaries : 13%

•Avg % decrease in managerial remuneration : 3.5%

•Managerial remuneration paid is within ceiling limits

Shareholding :

•Promoter holding : 74.25%

•Wrong calculation of Public shareholding total

Financial statements :

•Cash & cash equivalents : 17 crores

•Auditor remuneration : 57 lakhs, Advt exp : 46 crores, Royalty paid : 42 crores, R&D : 9.56 crores

•Contingent liabilities : 35 crores

Provisions :

•Provisions for warranty: 35.8 crores

•Provisions for litigations : 25.16 crores