ABB India surges 6% on good Q2 results

The company said order backlog of Rs 12,094 cr as of Q2 provides solid visibility for future revenue

ABB India has moved higher by 6.5% to Rs 1,548 on BSE after the company reported 39% year on year (Y-o-Y) growth in net profit at Rs 76 crore for the quarter ended June 30, 2017 (Q2CY17). Revenues grew 6% at Rs 2,224 crore on YoY basis.

“This was a quarter where the lag effect of demonetization and troughing corporate lending met with the anticipation of Goods and Services Tax (GST). Continued close collaboration led to deeper insights of customer operations in a dynamic environment. This ensured revenue growth. Lean management, relentless pursuit of cash over revenue, and similar initiatives as part of operational excellence yielded savings and superior cash position,” ABB India said in a press release.

The company’s orders flow increased by 13% to Rs 2,301 crore in Q2CY17 against Rs 2,040 crore in Q2CY16. The highest ever order backlog of Rs 12,094 crore, as of June 30, 2017, provides solid visibility for future revenue, it added.

The company said, base orders were the key contributor with industry turning to improving operational efficiencies through technology and digital upgrades including robotics automation. ABB strengthened its own digital asset health management offering to support the transformation of the Indian industry – with the launch of its remote drives service center.