DENSO, the $ 44.6 billion global mobility supplier, has reported a 77.3% increase in its consolidated revenue for Q1 FY22 over the same period last year, closing the quarter at revenues of $ 12.3 billion.
Consolidated operating profit for the Japanese major stood at $ 969.3 million, while profit attributable to owners of the parent company totalled $ 808 million, the company reported.
“Revenue increased due to recovery of vehicle sales and production against COVID-19 from the previous year. Operating income increased due to higher production volume and profit improvements created by corporate reform from the previous year,” said Yasushi Matsui, Senior Executive Officer and member of the Board of Directors, DENSO Corporation.
Region-wise, the company reported the highest revenue growth of 145% in North America, followed by a 127% growth in Europe and 59.8% in Asia. In its home market, DENSO grew 65.3% from the same quarter in the previous year.
Meanwhile, DENSO has set ambitious targets for its businesses. The company’s targets for 2025 include sales of ¥ 1 trillion (~ $ 9 billion) in electrification, ¥ 500 billion (~ $ 4.5 billion) in ADAS, a return on equity (ROE) of over 10% and an operating income margin of 10%.
While releasing the report earlier today, DENSO also shared updates and actions it has taken in the key areas of environment, and creating a safe and seamless world for all. The company has set its focus on achieving carbon neutrality, eliminate accidents and create new business.
As DENSO progresses in these areas, it will help the company achieve its Long-term Policy 2030 to enrich mobility that achieves sustainability, happiness and peace of mind for everyone, a release stated.
Going ‘green’ and fostering ‘peace of mind’
Matsui, also the Chief Financial Officer, DENSO Corporation said these priorities will propel the company’s on-going development of technologies that are ‘green’ and foster ‘peace of mind’.
DENSO focussed on electrification with its expanded alliance with aerospace leader Honeywell. The collaboration will enable the development, testing and flying of electric propulsion systems for the urban air mobility segment, and support DENSO’s sustainability focus, which includes striving for carbon neutrality by 2035, said the company.
Moreover, it focussed on advancements in energy management, including improvements in battery technology that will change the future of electric vehicles and are necessary to protect the environment.
From a peace of mind perspective, DENSO has worked on research and testing on vehicle and people flow data in collaboration with NTT Data. The joint test was done to provide safer, more efficient and more enjoyable mobility experiences and services for all. In addition, the company designed comfortable, clean and fresh spaces for mobility centred around the user experience. DENSO believes vehicles should function like living spaces, with individual temperate and humidity settings and a variety of other services.