ABB India PAT up 50% in June-qtr due to improved operational performance

Engineering firm ABB India reported a 50 per cent jump in its profit after tax (PAT) for the June-2024 ended quarter on the back of improved operational performance.

For the quarter under review, ABB India’s PAT was at Rs 443 crore, up from Rs 296 crore reported a year ago. Revenue from operations in the same period rose 13 per cent to Rs 2,831 crore.

Sequentially, ABB India’s profit dipped 4 per cent, while revenue slipped 8 per cent.

In its press statement, the company said, “Better margin orders, revenue mix, positive price development and optimisations drive profitability step up.” Sanjeev Sharma, managing director, ABB India, said, “The positive market momentum and the national focus on energy transition and infrastructure bodes well with ABB India's energy efficiency portfolio, allowing us to leverage the momentum to make inroads and strengthen our offerings in this space.”

ABB India’s board also approved an interim dividend of Rs 10.66 per share.

During the June-24 ended quarter, total order wins were at Rs 3,435 crore. “During the quarter, long cycle orders from emerging segments (e.g. data centres, renewables, electronics, metro and railways) as well as core industry segments contributed to the growth,” the company said.

ABB India also said as of June 2024, the company had a strong order backlog of Rs 9,517 crore distributed across segments, providing good revenue visibility, and is well-aligned to support growth plans in the coming quarters.

The cash position, the company said, remains healthy at Rs 4,872 crore as of June 2024.

In its outlook, ABB India said it is well poised to leverage the projected strong domestic growth in the market with relatively stabilising commodity prices, robust public investment, and resilient private consumption. This is likely to be supported by mildly easing fiscal and monetary policies. The emerging and high growth segments like data centres, railways, and metros are likely to provide the required momentum.