ABB net up 34% to Rs 95 crore

BS 200 SCORECARD

Engineering major ABB posted a 34 per cent jump in its net profit to touch Rs 94.6 crore for its fourth quarter ended December 31, 2005 against the corresponding quarter last financial year.

Boosted by good volumes, ABB booked revenues of Rs 1,001.6 crore in the fourth quarter, a growth of 31 per cent compared with the same period last year.

The fourth quarter saw orders worth Rs 1,016.6 crore, 49 per cent higher than orders of the fourth quarter of 2004.

On a yearly basis, ABB recorded a cumulative net profit of Rs 218.7 crore, 42 per cent higher than the previous year's figure.

ABB India maintained a steady revenue growth momentum and closed the year with cumulative revenues of Rs 3,014.1 crore, registering 31 per cent growth over 2004, based on the conversion of a healthy order backlog as well as significant growth in order intake during the year.

The company registered a record order intake for the year 2005, which touched Rs 3,764.5 crore, growth of 46 per cent over the previous year.

"We have been successful in maintaining our growth momentum and have seen a significant order intake across our power and automation businesses. Our strategic focus on standard products has yielded good results, and we continue to increase our market penetration as well as expand our range of offerings. We are also pleased with the increase in contribution from recently introduced business lines that has helped augment growth in existing business streams. Focus on costs and further enhancement of operational efficiencies have helped ensure a healthy bottom line growth," said Ravi Uppal, vice-chaiman and managing director, ABB India, commenting on the results.

"India's strong economic fundamentals, the urgent need to provide quality power "" efficiently and economically for urban and rural consumption, and the increasing pace of industrial growth are all encouraging signs for ABB in India," he added, sharing his views on the market outlook.

Order intake for the year included major project orders from power utilities, industries and the fast-growing building sector. As part of its thrust on standard products, the company took up its channel partner strength to over 500, significantly increasing its market reach. Capacity expansions are underway across a range of business units and the company continues to expand its portfolio.

The robust growth in order intake helped the company augment order backlog to over Rs 2,100 crore, reflecting growth of 57 per cent from the order backlog at the beginning of the year.