ABB reports 20% rise in net profit at Rs 48 crore in Q2

ABB India Limited, a provider of power and automation technologies, today reported 20% growth in net profit at Rs 48 crore for the second quarter ended June 30, 2014 compared to Rs 40 crore in the year ago period. The company has shown 3.6% growth in revenues at Rs 1,794 crore compared to Rs 1,730 crore in the second quarter of last fiscal. The growth in short cycle business helped the company register marginal growth in revenues.

Continued focus on localisation, cost optimisation and striking the right balance of risks and returns helped the company to record good growth in net profit, the company said.

Its profit before tax went up 21.6% to Rs 73 crore in the quarter from Rs 60 crore in the corresponding quarter.

"Another quarter led by a healthy contribution from base and large orders in a challenging business environment. At a time when market sentiments are positive, our intensified efforts ensured greater coverage, innovation and expanded scope of offerings to our customers," said Bazmi Hussain, managing director, ABB India Limited.

During the quarter, the company received orders worth Rs 2,019 crore compared to Rs 1,749 crore in the same quarter last year, showing a growth of 15.4% year on year. Exports continued to grow at a faster pace while emerging business streams also supported the growth momentum, the company said.

The total order backlog has however declined to Rs 8,083 crore from Rs 8,260 crore in the corresponding quarter in 2013. The order backlog position of the company has been steadily increasing over the last six months providing revenue visibility, the company said.

ABB's shares closed 2.83% lower at Rs 1,072 per share on the Bombay Stock Exchange on Wednesday.