ABB India fell 2.11% to Rs 837 after net profit dropped 44.37% to Rs 64.64 crore on 14.33% fall in total income to Rs 1,624.81 crore in Q1 March 2020 over Q1 March 2019.
ABB India said that revenues for the first quarter were impacted by lower sales, non-receipt of delivery clearance, lower service revenue in the nationwide lockdown due to the COVID-19 pandemic. This impact primarily occurred in the month of March 2020.
ABB India's order backlog as of 31 March 2020 stood at Rs 4,444 crore. ABB India said that total orders increased by 10% from various sectors including engineering, manufacturing of electrical and transportation equipment and the metals and energy sector. Postponement of major capex to subsequent quarters due to COVID-19 has also led to greater focus on plant upkeep and optimization resulting in opening new frontiers in the digital service business.
In its outlook, the company said that the impact of COVID-19, as well as the fall in oil prices, has significantly impacted the short-term outlook. While the company is taking prompt action to adapt its operations and cost base to safeguard profitability, it expects the results in the coming quarter to be impacted due to the loss of volumes.
ABB India is engaged in power and automation business in India.
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