ABB India net up 69% to Rs 203 cr in July-Sept quarter on higher revenues

Electrification and automation major ABB India on Friday posted a 69 per cent rise in consolidated net profit to Rs 203 crore in the September quarter, aided by higher revenues and a one-off gain.

The consolidated net profit of the company stood at Rs 120 crore in the quarter ended September 30, 2021.

"Profit after tax reported at Rs 203 crores, a growth of 69 per cent over Q3 2021 (July-September 2021) driven by solid execution after considering a one-time extraordinary gain (Rs 46 Crores) on the final divestment of the turbo charger business," a company statement said.

The company follows the January to December financial year.

Its revenues rose to Rs 2,120 crore in the quarter from Rs 1,778 crore in the same period a year ago.

Total orders for the quarter were at Rs 2,634 crore as compared to Rs 1,909 crore in Q3 2021 (July-September 2021), a growth of 38 per cent.

Process automation spearheaded performance, with wins from large conglomerates in steel, cement, gas, resulting in a 96 per cent year-on-year (y-o-y) growth in orders, it stated.

Electrification business was up by 36 per cent compared to Q3 2021 due to strong customer connect leading to good order inflows across all channels, divisions, and segments, it added.

Motion business area orders, up 20 per cent y-o-y, were supported by good contribution from channel business, exports, and package orders for motors and drives.

Robotics and Discrete Automation clocked higher paint orders, but overall orders de-grew by 18 per cent.

ABB India continues to have a strong order backlog as of September 30, 2022 at Rs 6,519 crore, up 37 per cent y-o-y, which provides revenue visibility and is well aligned to support growth plans in the coming quarters, it noted.

ABB India Managing Director Sanjeev Sharma said, "The strong performance for the quarter can be attributed to ABB India's expanding customer base and its industry-leading product portfolio, which is aligned to growing market demand. We continue to focus on our processes to be more efficient and productive for ensuring on-time execution of our backlog."

Customers across various market segments have been scaling up, accelerating the demand for innovative, energy-efficient and reliable digital solutions that ABB India offers, he added.

"With a steady margin growth and solid cash position, we continue to make investments in improving operational efficiencies and expanding capacity. Our ESG goals continue to drive the business agenda at ABB India, much in line with the ABB Group Sustainability targets 2030," he said.