Companies

ABB India net profit slips 4 per cent to ₹62 cr in December qtr

PTI New Delhi | Updated on February 10, 2021

Declares ₹5/share dividend for 2020

ABB India on Wednesday reported over 4 per cent decline in its net profit to ₹62 crore for December quarter.

Its net profit was ₹65 crore in the quarter ended December 2019.

The company follows January to December financial year.

Its revenues declined to ₹1,701 crore in the quarter from ₹1,953 crore in the same period a year ago.

The reported profit for the quarter is after considering the one-time impact of ₹93 crore in two divisions of Industrial Automation to de-risk and ramp down exposure largely in legacy projects in the power generation segment, ABB India MD Sanjeev Sharma said.

"Excluding this one-time impact, the profit for the quarter stood at ₹173 crore (an increase of 16 per cent Y-on-Y (year on year) and 52 per cent Q-on-Q (quarter on quarter) compared to ₹150 crore, same quarter last year, on like to like basis.

"With these proactive one-time measures, we believe we are now well placed for the next level growth in aforementioned divisions and other businesses, as evident in the order growth year-on-year," Sharma added.

The Board of Directors of the company have recommended a dividend of ₹5 per equity share of the face value of ₹two each for the year ended December 31, 2020.

In 2020 (January to December), the company' net profit declined to ₹230 crore from ₹302 crore in 2019.

Its revenues also came down to ₹5,821 crore in 2020 from ₹7,315 crore in 2019.

"2020 was a year of unprecedented challenges, but ABB’s agile business model helped to navigate headwinds and deliver profitability for the year, thanks to our team pulling strongly together. During the year, we built a strong cash reserve with a focus on collections and cash optimisation," Sharma said.

"With a strong order backlog, our timely execution and value adds for our customers, we remain optimistic for 2021. In light of the ongoing COVID-19 crisis, we are closely monitoring our key market segments, which are expected to gradually return to growth." Its total orders stood at ₹1,470 crore during the quarter (ended on December 31, 2020) and Rs 5,932 for the year (2020).

Pent up demand and early signs of recovery led to sequential growth in order wins. Collaboration with customers through virtual connections helped enhance engagement. During the quarter, Motion and Industrial Automation business areas posted double-digit growth year-on-year, the company said.

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Published on February 10, 2021
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