ABB India Q1 net surges 9-fold to Rs 59 cr

ABB India, a supplier of power and automation technologies, today reported a nine-fold growth in its net profit at Rs 59.5 crore for the first quarter
 ended March 31, 2011 compared to the corresponding quarter last year.

Its revenues for the quarter rose 22.3% to Rs 1,781.3 crore compared to the year-ago period. The growth was due to execution of the strong order backlog combined with higher sales of short cycle products and services. This is also the highest-ever revenue for the company in the first quarter of a year.

The company received orders worth Rs 1,695 crore during the quarter compared to an order intake of Rs 1,688.7 crore for the same period last year. The company's order backlog was Rs 8,329 crore as of March 2011 compared to Rs 8,436 crore at the end of December 2010.  Strong growth in base orders could offset the impact of lesser inflow from large orders which are already under procedural clearances for subsequent quarters. Investment in industrial activities and power infrastructure continues to be strong and shows increased market opportunity, the company said.

 

During the quarter the company finalised the acquisition of operating businesses which were seeded in ABB Global Services and Industries to bring in more synergies in its operations in India. The product lines acquired include transformer insulation kit, low voltage breakers and switches and vacuum interrupters. The transaction is effective from April 1, 2011.

Commenting on the performance, Bazmi Husain, country manager and managing director, ABB India, said: "Investment in our people coupled with a strong focus on operational excellence is beginning to yield results. The continued focus on new revenue streams such as renewables and energy efficiency along with increased localisation of our product offerings will make us well positioned against the competition in future quarters."