Mumbai, Jan. 24
ABB Ltd has reported a 34 per cent increase in its fourth quarter net profit at Rs 94.6 crore against Rs 70.8 crore in the year-ago period.
Strong order book, focus on specific products and a broader range of offering helped the company sustain growth, Mr Ravi Uppal, Vice-Chairman & Managing Director, ABB India, said at a news conference.
During the fourth quarter, the company received orders worth Rs 1,016.6 crore, higher by 49 per cent from the year-ago period.
Revenues for the quarter moved up by 31 per cent to Rs 1,001.6 crore (Rs 762.2 crore).
The board has recommended a dividend of Rs 8 per share (80 per cent) for the year.
The power and automation technologies company reported a 42 per cent increase in its full year net profit at Rs 218.7 crore as compared with Rs 154.3 crore in the previous year. Revenues for the full year moved up by 31 per cent to Rs 3,014.1 crore (Rs 2,305.6 crore). During the year, the company registered a record order intake of Rs 3,764.5 crore, a growth of 46 per cent over the earlier year.
The company also focussed on cost management despite rising prices of raw materials such as steel, copper and oil.
"India would be an important sourcing base for ABB as cost advantage is huge," Mr Dinesh Paliwal, Chairman, ABB, said. According to Mr Paliwal, India is an important market for the global ABB entity. "Though India's share in the global revenues of ABB is small, the growth is quite rapid. Our production capacities are growing in India but the domestic market is growing at an equally rapid pace," Mr Paliwal said. At the end of December 2005, ABB's exports stood at Rs 365 crore, higher by 10 per cent over the earlier year.
The company's return on capital employed moved up to 43 per cent during 2005 from 36 per cent in the earlier year.
The company plans to increase the number of engineers at the Global Engineering Centre to 500. The Centre, which was set up in 2005, has 135 people at the current juncture.
Shares of ABB moved up by 8.65 per cent or Rs 197.90 to Rs 2,485.05 on BSE on Tuesday.