Companies

ABB India’s Q4 profit dips by 4.6% to ₹ 62 cr

Our Bureau Bengaluru | Updated on February 10, 2021

Company says it will closely monitor shifting global trade scenario and its influence on commodity prices, forex and import policies

ABB India Limited has posted 4.61 per cent lower profits at ₹62 crore for fourth quarter (Q4) of calendar 2020 as against ₹65 crore profits recorded in the same period last year.

The company’s revenues are also lower by 13 per cent to ₹ 1,701 crore (₹ 1,953 crore).

The company said fourth quarter performance consisted of discontinued operations of its Power Grid business.

“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 optimization,” said Sanjeev Sharma, Managing Director, ABB India.

“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.”

The company’s cash position continues to remain robust at ₹ 2,207 crore at the end of 2020 vis-a-vis ₹ 1,598 crore in 2019.

Orders

Total orders were at ₹ 1,470 crore during the quarter and at ₹ 5,932 for the year. 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 quarter was marked by orders in the areas of power distribution, renewables, construction, energy, and mining segments.

Outlook

The Covid-19 crisis was a drag on the performance of the year. Although the start of the vaccination drive in the country could lead to a recovery, market uncertainty due to Covid-19 crisis remains. The company said it will closely monitor the shifting global trade balance and trade agreements and its likely influence on commodity prices, forex and import policies.

In the domestic market, the resilient nature of certain segments and industries is reflected in the early signs of revival witnessed in data centres, renewables, electronics, food and beverage, pharmaceuticals, etc. Some end markets, particularly conventional power generation, mining and steel, continue to witness short-term stress.

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Published on February 10, 2021
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