Financial Daily from THE HINDU group of publications
Thursday, Feb 21, 2002
Corporate - Restructuring
ABB net up at Rs 65 cr; to pay 50 pc dividend
Mr Ravi Uppal, Managing Director and Country Manager, ABB India, with Mr K. Rajagopal, Vice-President (Finance), at a press conference in Mumbai on Wednesday.
MUMBAI, Feb. 20
FOCUS on exports, product upgradation and cost- cutting have pushed up the net profit of Asea Brown Boveri Ltd (ABB Ltd) by 20.9 per cent for the fiscal year ended December 31, 2001 to Rs 65.32 crore (Rs 54.01 crore).
Net sales during the year jumped 31 per cent to Rs 1,041.59 crore (Rs 793.27 crore) while other income was Rs 14.15 crore (Rs 13.57 crore). The company's board today declared a 50 per cent dividend at Rs 5 per share.
"Our revenues are up in both projects and products as a result of increased focus on exports which have grown 250 per cent over the year,'' Mr Ravi Uppal, Managing Director, ABB Ltd, said at a press briefing here. The value of export shipments during the year stood at Rs 67 crore (Rs 35 crore).
He said the company expected a "decent'' two-digit growth in sales volumes in 2002.
To divest fan making unit
Mr Uppal also announced the company's decision to divest its fan manufacturing business _ currently worth three per cent of turnover _ to Global Air Movement (Luxembourg) SARL, as per the group's global decision.
Mr Uppal said the company had an open-ended capital expenditure plan for the year 2002 and would focus on brand-building by increasing adspend. He, however, did not quote a figure for either.
The company's total expenditure for the year was up to Rs 945.15 crore (Rs 715.65 crore) while interest payments doubled to Rs 7.25 crore (Rs 3.90 crore).
"Interest payments included interest liabilities of the four group companies amalgamated with ABB during the year,'' Mr K. Rajagopal, Vice-President (Finance), said.
The company completed amalgamation of the erstwhile Introl (India) Ltd, ABB Instrumentation Ltd, ABB Lenzohm Service Ltd and ABB Analytical Ltd with ABB Ltd on December 24, 2001.
Sales figures for the year include Rs 45.65 crore from sales of transferor companies, a news release said.
The company's net profit for the quarter ended December 31, 2001 stood at Rs 3.62 crore (Rs 2.90 crore) while sales were Rs 390.87 crore (Rs 286.05 crore).
ABB India will henceforth be responsible for supplying certain products to China and South-East Asia as per the group directive, Mr Uppal said.
The company will focus on power projects under the APDP (accelerated power development programme) scheme in Karnataka and Andhra Pradesh during the year. "The company will continue to focus on consolidation and working capital management during the year. But more importantly, we would focus on controlling expenses,'' Mr Uppal said.
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