ABB Q4 net up 3.47 times to Rs 59 cr

The stock has surged over 7% to Rs 633 on reporting over three-fold jump in net profit at Rs 59 cr for Dec quarter

ABB India Ltd, a supplier of power and automation technologies, reported that its net profit went up 3.47 times to Rs 59 crore for the fourth quarter ended December 2013 compared with Rs 17 crore in the corresponding quarter last year.

The company’s revenues for the quarter witnessed a marginal growth 5.9 per cent at Rs 2,175 crore against Rs 2,053 crore in the year ago quarter.

The rise in profit was aided by cost reductions and improved margins. The company also generated a healthy operating cash flow in the midst of a tight liquidity market.

The operating profit for the fourth quarter went up 2.91 times to Rs 122.46 crore for the quarter against Rs 42 crore in the year ago period.

The company received orders worth Rs 1,666 crore for the quarter ended December 2013 compared with Rs 1,579 crore in the corresponding quarter of the previous year. The order book for the full year 2013 stood at Rs 6,177 crore, a decline of 3.5 per cent over the previous year's Rs 6,966 crore. Base orders from a wider spectrum of customers helped offset dearth of large projects in the market. However, the total order backlog stands at Rs 7,709 crore as on December 31, 2013.

“The year 2013 witnessed a steady improvement in margins. While market uncertainties continue, our intensified efforts to remain cost competitive and strengthen project management have borne visible results. Our capacities are ready to address the next phase of growth as the market improves. Overall, we remain aligned to charting a course of profitable growth backed by business led collaboration and relentless execution” said Bazmi Husain, managing director, ABB India Limited.