Johnson Controls-Hitachi Posts Strong Sales Despite Financial Struggles

Johnson Controls

Japan: Johnson Controls-Hitachi Air Conditioning reported a 44.09% increase in net sales for Q3 FY24-25, reaching Rs 431.65 crore ($ 49.8 miilion). The company has shown consistent positive results over the past four quarters, with a return on capital employed (ROCE) of 10.17%. 

However, long-term financial weaknesses persist. The operating profit CAGR has declined by -20.73% over the past five years, and the EBIT to interest ratio stands at -0.54, indicating concerns about debt servicing. The return on equity (ROE) is 3.00%, reflecting limited profitability. 

Despite these challenges, the company's stock has surged by 83.22% over the past year, outperforming the broader market. 

Source: Market Mojo