Johnson Controls Hitachi AC , a leading player in the air conditioning industry, has released its financial results for the first quarter of the fiscal year, alongside a significant announcement regarding its statutory auditors.

Financial Performance

The company reported a mixed financial performance for the quarter ended June 30:

The company experienced a decline in its financial performance compared to the same quarter last year. Revenue from operations decreased by 14.4% year-over-year, while net profit saw a significant drop of 57.8%.

Segment Performance

Johnson Controls-Hitachi operates in two primary segments:

1. Cooling products for comfort and commercial use: This segment generated revenue of ₹8,375.90 crore, contributing the majority of the company's total revenue.

2. Design and development services: This segment reported revenue of ₹239.70 crore for the quarter.

Dividend Declaration

In a positive move for shareholders, the Board of Directors declared an interim dividend of ₹36 per equity share.

Auditor Resignation

In a significant development, Price Waterhouse & Co Chartered Accountants LLP, the company's statutory auditors, have tendered their resignation effective July 24. The resignation comes in light of potential conflicts arising from non-audit services provided by other firms within their network to the Robert Bosch Group, the prospective acquirer of Johnson Controls-Hitachi's overseas parent company.

Key points regarding the auditor resignation:

• The auditors confirmed they had issued their audit report for the year ended March 31, and the limited review report for the quarter ended June 30, prior to their resignation.
• The resignation is a proactive measure to maintain independence and comply with quality control standards.
• The company will need to appoint new statutory auditors to ensure continuity in financial reporting and compliance.

Market Implications

The combination of declining financial performance and the sudden change in auditors may raise questions among investors and stakeholders. However, the company's proactive approach in addressing potential conflicts and maintaining transparency through timely disclosures is noteworthy.

As Johnson Controls-Hitachi navigates these challenges, investors will likely keep a close eye on the company's future financial performance and its process for appointing new auditors. The air conditioning industry's seasonal nature, with major demand typically generated during the first and last quarters of each financial year, adds an additional layer of complexity to assessing the company's performance trajectory.

Johnson Controls Hitachi AC , a key player in the air conditioning industry, has made a significant announcement regarding its dividend payout. The company's Board of Directors has approved an interim dividend of ₹36.00 per equity share for the current financial year.

Dividend Details

The Board's decision to declare an interim dividend of ₹36.00 per share comes as welcome news for the company's investors. This substantial dividend reflects the company's financial health and its policy of rewarding shareholders.

Key Points:

• Dividend Amount: ₹36.00 per equity share
• Record Date: July 9, 2025
• Payment Date: By July 24, 2025

It's noteworthy that this dividend announcement marks the company's return to dividend payments after a six-year hiatus, signaling a positive turn in its financial strategy.

About Johnson Controls-Hitachi Air Conditioning India

Johnson Controls-Hitachi Air Conditioning India is a joint venture between Johnson Controls, a global diversified technology and multi-industrial leader, and Hitachi Appliances, Inc., a subsidiary of Hitachi, Ltd. The company is known for its innovative air conditioning solutions for residential, commercial, and industrial applications.

This interim dividend announcement underscores the company's financial stability and its renewed focus on shareholder returns. The company's decision to resume dividend payments after a significant gap suggests improved financial performance.

Investors should consider this information as part of a broader analysis of the company's overall financial performance and market conditions.