ABB India Q2 Results: PAT Rises 36% at Rs 102 Crore
Power and automation major ABB India today posted a 36 per cent jump in its net profit at Rs 102 crore for the quarter ended June 30, while its operational EBITA is up 65 per cent YoY to Rs 155 crore. The company’s revenues are up 21 per cent YoY driven by execution excellence and strong conversion PAT up 36 per cent YoY to Rs 102 crore, driven by better product mix and cost saving measures. The order intake is up 7 per cent YoY, attributable to base orders, services and export developments.
Total orders increased to Rs 2,474 crore during the second quarter of 2018, supported by base order growth. Export orders grew 68 percent year-on-year. Consistent market development efforts, greater collaboration and integrated offerings helped secure orders for clean energy, from process industries and in power infrastructure development, especially in the South Asia region.
Service orders also grew in double digit terms, with broad-based growth across all divisions, said the statement.
“We have delivered solid performance in the quarter. Business fundamentals grew positively over the first half of the year. A robust order book and execution excellence combined with strategic product mix and robust cash management to deliver improved margins and a significant step-up in the bottom-line,” said Sanjeev Sharma, Managing Director, ABB India.
“We will continue to partner and invest in the energy and fourth industrial revolution for the nation, deploying ABB technologies with the industry leading digital capability of ABB Ability,” he added.
Revenue for the quarter was Rs 2,713 crore, up 21 percent over the prior year period. The maturing cycle of the Raigarh-Pugalur UHVDC order, medium voltage portfolio offerings, and a nascent revival in the process industries more than offset competitive pricing pressures in solar, the firm said, adding that continued focus on collections helped the company enhance its cash position this quarter. ABB India remains a net debt-free entity.
Profit before tax (PBT) increased by 36 percent to Rs 161 crore and profit after tax (PAT) rose 36 percent to Rs 102 crore YoY. Cost savings and good product mix contributed positively to the operational EBITA development.
Further, the company stated that transportation was a growth driver in the quarter with a first of its kind integrated power and automation package order for ferries, and orders for drive propulsion systems for Indian Railways. The flexibility to scale-up, adapt and ability to re-engineer and co-create solutions with customers is a differentiator, it said.
During the quarter multiple digitalization MoUs were signed from paint to cement and natural resources companies. Such models entail longer conversion cycles as orders for enterprise-wide applications are preceded by pilots at the client locations, the company’s stated.