United Technologies Corp (UTX) has reported a 17.16 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $1,386 million, or $1.73 a share in the quarter, compared with $1,183 million, or $1.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,182 million, or $1.48 a share compared with $1,214 million or $1.46 a share, a year ago.

Revenue during the quarter grew 3.43 percent to $13,815 million from $13,357 million in the previous year period. Gross margin for the quarter contracted 67 basis points over the previous year period to 27.06 percent. Total expenses were 83.59 percent of quarterly revenues, down from 85.44 percent for the same period last year. This has led to an improvement of 185 basis points in operating margin to 16.41 percent.

Operating income for the quarter was $2,267 million, compared with $1,945 million in the previous year period.

"United Technologies is off to a great start in 2017 as all four businesses delivered strong top line growth," said UTC chairman and chief executive officer Gregory Hayes. "Our continued execution against our strategic priorities and our investments in innovation are enabling us to meet our financial commitments. We remain fully confident in our 2017 expectations and our 2020 targets. Our portfolio of industry leading franchises is well positioned to create significant and sustainable long-term shareholder value."

For financial year 2017, United Technologies Corp projects revenue to be in the range of $57,500 million to $59,000 million. The company forecasts diluted earnings per share to be in the range of $6.30 to $6.60 on adjusted basis.

The company has spent $139 million cash to meet investing activities during the quarter as against cash outgo of $493 million in the last year period.

The company has spent $929 million cash to carry out financing activities during the quarter as against cash inflow of $2,030 million in the last year period.

Working capital declines

United Technologies Corp has witnessed a decline in the working capital over the last year. It stood at $5,579 million as at Mar. 31, 2017, down 20.35 percent or $1,425 million from $7,004 million on Mar. 31, 2016. Current ratio was at 1.24 as on Mar. 31, 2017, down from 1.34 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 88 days for the last year period. Days sales outstanding were almost stable at 73 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 42 days for the quarter compared with 78 days for the previous year period. At the same time, days payable outstanding was almost stable at 64 days for the quarter, when compared with the previous year period.