ABB India net up marginally at Rs 39 cr

ABB Limited India, a provider of power and automation technologies, on Tuesday reported a negligible 1 per cent increase in its net profit at Rs 38.7 crore for the second quarter ended June 30, 2011 compared to the corresponding quarter last year.

"The benefits arising out of cost focus helped reduce the impact on margins due to the prevalent external environment characterised by intense competition, low market prices and higher input costs," the company said.

The company reported revenue of Rs 1,693 crore for the quarter, a growth of 17 per cent over the year ago period. All divisions posted increase in revenues for the first half of the year ended June 2011. During the quarter, the company received orders worth Rs 1,791.8 crore, a growth of 45 per cent over the corresponding quarter. The demand came from energy efficient solutions in the power and industry sectors. Base orders considerably helped drive a healthy order book position for the second consecutive quarter.

"While continuing the focus on base orders, the company expects to benefit from significant opportunities in large projects that are awaiting procedural clearances. The long-term view continues to be positive mainly driven by the increasing need for reliable, sustainable and efficient energy solutions, industrial productivity and building efficiency," said Bazmi Husain, country manager and managing director, ABB India.

However, he said, "High inflation and increased interest rates have created certain uncertain market conditions leading to delays in many large investment plans. We continue to focus our efforts on operational excellence, manufacturing footprint and talent management to maintain our competitiveness in the longer-term."