Efficiencies boost ABB India net 55%

BS 200 SCORECARD

ABB has reported 55 per cent jump in net profit for the third quarter (ended September 30) of the current financial year at Rs 82.1 crore compared with the corresponding quarter of 2005-06. Higher revenues and continued operational efficiencies primarily led to the improvement in the company's profitability.

ABB continued to make investments for growth through internal cash generation, facilitated by efficient working capital management and continued focus on costs and productivity. Its total income surged 52 per cent to Rs 1093.5 crore for the quarter under review from Rs 719.9 crore last year.

ABB India CMD Ravi Uppal said, "Power sector investments across the value chain are gathering pace, driven by generation capacity additions, transmission network augmentation, grid reliability and efficiency improvements. Industrial growth is also promising, both in terms of capacity additions and productivity enhancement initiatives."

He added that in line with its commitment towards profitable and sustainable growth, the company would continue to increase both the depth and breadth of its business.

"This will be driven by market penetration and increased volumes from the existing portfolio, as well as generation of new revenue streams," Uppal said.

ABB India continued to strengthen its order book taking the cumulative order intake for the nine-month period ended September 2006 to Rs 4,211 crore, up 53 per cent over the same period last year. The order intake during the third quarter was 1,358 crore, 48 per cent higher than the third quarter of the previous year.

In addition to significant orders for power, automation and building solutions projects, the company continued to build on the growth of its standard product business.

The company commissioned its recently announced low voltage distribution electricals unit at Haridwar. The Bangalore-based controlgear and LV motors units, which became operational earlier this year, are also gaining momentum.

The record order intake during the past few quarters has helped the company strengthen the order backlog further to Rs 3,564 crore at the end of September 2006 vis-a-vis Rs 2,103 crore at the beginning of the year and Rs 3,137.5 crore on June 30 this year.

"Our capacity and range expansion investment programme across products and locations continues on course and address the power and automation needs of a growing market," the CMD said.