ABB Power Products posts Rs 29.18 cr net profit for March quarter

ABB Power Products and Systems India Ltd (APPSIL) on Thursday posted a net profit of Rs 29.18 crore in the March 2020 quarter.

The company follows January-December financial year.

The comparable financial figures for the January-March 2020 period were not given by the company as it was incorporated in February 2019.

The firm's net profit was Rs 35.48 crore in the quarter ended on December 31, 2019, the company said in a statement.

Its total income during the January-March 2020 stood at Rs 811.89 crore.

The company net profit was Rs 165.39 crore during the period from February 19, 2019, to December 31, 2020.

The total income during the February 19-December 31 last year was Rs 3,231.21 crore.

Its income during the December 2019 quarter stood at Rs 1,115.80 crore.

"We are pleased to report a solid performance in our first reporting quarter. The positive momentum in the domestic market in the first two months of the quarter was impacted by uncertainties due to the coronavirus outbreak and related disruption in global trade. In such market conditions, our relentless efforts resulted in a solid order book," said APPSIL Managing Director N Venu in the statement.

He added that in order to retain strong market position amid these turbulent times, the company will continue to build on its strengths and leverage differentiated solutions for digitalisation, data centres and services.

Last year, ABB India hived off its power grid business and created ABB Power Products and Systems India.

Total orders for the March 2020 quarter stood at Rs 934.2 crore, led by utilities and industries.

The company said its pursuit of traditional markets complemented by headway into new areas helped deliver a solid performance in a challenging environment.

Orders included substations, substation automation and network building blocks (such as transformers and high-voltage switchgear) from utility and industrial customers.

Despite global trade uncertainties and the growing spread of coronavirus, a large export order for transformers for a project in Tanzania supported the company, it said. The firm made headway into new emerging power markets such as Uruguay and strengthened grids in Vietnam. Orders for products and systems in Bhutan, Chile, Angola and other countries were also recorded.

The order backlog, as of March 31, stood at Rs 5,192 crore and is expected to provide revenue visibility for the coming quarters.

ABB Power Products and Systems India Ltd is the standalone legal entity of ABB's power grids business in India.

The company's shares ended the day at Rs 800 apiece on the BSE, a fall of 1.43 per cent over the previous close.