Companies

ABB profit slumps 94%

Our Bureau Bangalore | Updated on February 25, 2011 Published on February 24, 2011

ABB Ltd, India's net profit for the fourth quarter fell almost 94 per cent to Rs 68 lakh because of provisioning for expected incremental early exit costs for all the balance projects, pertaining to the non-core businesses, which it had decided to exit in the earlier quarters.

It also blamed price erosion and increased competition in the power sector. Revenues, however, went up 9 per cent from Rs 188.52 crore to Rs 205.06 crore.

A press release from the company said though some orders were indefinitely postponed, it has an order backlog as of December 2010 of Rs 843.62 crore and hoped that this would boost its performance in future quarters.

The board of directors has recommended a dividend of 100 per cent, subject to the approval of shareholders at the forthcoming annual general meeting.

“The ABB group has a long-term view and confidence in the potential of the Indian economy. The group increased its investment in India by $965 million in last year's open offer and continues to focus on new initiatives for the future benefit of the company,” said Mr Bazmi Husain, the recently appointed Country Manager and Managing Director of ABB Ltd.

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Published on February 24, 2011
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