Comments
Engineering firm ABB India on Thursday reported an around 76 per cent decline in net profit at ₹16.75 crore for the June quarter, mainly due to lower revenues.
The company’s net profit stood at ₹69.74 crore in the quarter ended June 30, 2019, it said in a regulatory filing.
Total income declined to ₹1,012.40 crore in the quarter under review from ₹1,746.12 crore earlier.
The company follows the January-December financial year.
H1 profits dip
For the first half of 2020, its net profit stood at ₹82.75 crore, down from ₹158.76 crore in the same period of last year.
Total income came in at ₹2,580.42 crore, compared to ₹3,615.49 crore in H1 2019.
Total orders for the quarter (April-June) stood at ₹1,200 crore and for H1 2020 (January to June), it was ₹3,153 crore.
During the quarter, the company succeeded in securing orders in varied sectors, including power distribution equipment, automation projects for process industries, food and beverage and electronics.
Sectors with continued investment include rail infrastructure, industrial buildings as well as water and waste-water, it said.
ABB India continues to have a stable order backlog as of June 30, 2020, at Rs 4,671 crore, widely spread across various end markets, it added.
Sanjeev Sharma, Managing Director, said, “ABB’s business model resilience and robust fundamentals kept its strength despite interim disruptions on account of the Covid-19 crisis and lockdown. H1 2020 (Jan-June) has been impacted due to the global slowdown, however, our order backlog is strong and steady to support us through the coming quarters.”
The company said as global uncertainty continues due to the pandemic situation, local markets are expected to remain subdued with diminished per capita income.
However, ABB said it shall continue to strengthen customer engagements that will aid the recovery period in the “new normal”.
In order to tide over the current situation, focus on the right sectors like F&B, data centres, pharmaceuticals, energy, chemicals, and railways and metros, which are likely to demonstrate selective shoots of growth, will be critical, it added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.