Companies

ABB nets ₹79 crore profit in Q2, revenue surges 17%

Mumbai | Updated on November 14, 2019 Published on November 14, 2019

Led by the government’s electrification push, ABB reported a robust set of quarterly numbers. It posted a net profit of ₹79 crore in the September quarter, a 120 per cent increase when compared to the same period last year; it had reported a profit of ₹36 crore. Gains were driven by growth in orders in the September ended quarter.

It had clocked revenue of ₹1,746 crore, a 17 per cent rise when compared to ₹1,492 crore posted in the year-ago quarter. Orders also marked the quarter for smart cities in Ranchi and the ancient city of Ujjain for smart power distribution equipment like compact substations and ring main units. A steel major also placed a significant order on the electrification front.

Strong backlog, higher capacity utilization, revenue mix, support from services in the more substantial businesses helped sustained the momentum for the company. These numbers are only for continuing business as ABB has divested its Power Grids business in Q4 2018.

Total orders were at ₹1,606 crore, up 5 percent during the quarter and year-to-date orders were at ₹5,374 crore. Service orders were up 16 per cent YoY led by process improvement and production optimization initiatives when private capex continues to lag. We have sustained the growth momentum in orders, revenue and profitability in the quarter in mixed market conditions,” said Sanjeev Sharma, Managing Director, ABB India. Analysts agreed. “ABB has delivered a steady performance in line with our estimates of ₹1,730 crore in profits that we expected,” said Arafat Saiyed, Research Analyst, Reliance Securities.

Operational EBITDA came in at ₹119 crore, strong growth when compared to ₹47 crore posted in the year-ago period.

Published on November 14, 2019
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