ABB India Jul-Sep net profit more than doubles to Rs 79 cr

ABB India's standalone net profit more than doubled to Rs 79 crore in the quarter ended September 30, 2019, mainly due to higher revenues.

The company follows January to December financial year.

ABB India had posted a net profit of Rs 36 crore in the quarter ended September 30, 2018, a BSE filing said.

Total revenue of the company rose to Rs 1,746 crore in July-September from Rs 1,492 crore in the year-ago quarter.

The company's total orders rose 5 per cent year-on-year (YoY) to Rs 1,606 crore.

Service orders were up 16 per cent YoY led by process improvement and production optimisation initiatives when private capex continues to lag, the company said in a statement.

While electrification and motion businesses continued the solid growth pattern, robotics and discrete automation and industrial automation are facing challenges in navigating sectoral headwinds, it added.

The quarter was also marked by orders for smart cities in Ranchi and the ancient city of Ujjain for smart power distribution equipment like compact substations and ring main units. A steel major also placed a significant order on electrification ArTuK panels.

The company said transportation continues to be a growth driver with robust orders for propulsion systems in the third quarter (July-September).

ABB India continues to have a strong order backlog as of September 30 at Rs 4,372 crore, which provides revenue visibility and is well aligned for growth in the coming quarters, it said.

"We have sustained the growth momentum in orders, revenue and profitability in the quarter in mixed market conditions," ABB India Managing Director Sanjeev Sharma said in the statement.

"With a strong cash position, steady operating margins, keen focus on costs and operational excellence initiatives, we will strive for long term growth and value additions for our stakeholders. Our agility and performance-oriented culture demonstrated in this quarter's results will also help us navigate any headwinds in the shorter term in select markets and segments," he added.