ABB India Limited reported results for the second quarter ended June 30, 2017.
ABB India’s revenue in the second quarter expanded to INR 2,224 crore. This was a quarter where the lag effect of demonetization and troughing corporate lending met with the anticipation of Goods and Services Tax (GST). Continued close collaboration led to deeper insights of customer operations in a dynamic environment. This ensured revenue growth. Lean management, relentless pursuit of cash over revenue, and similar initiatives as part of operational excellence yielded savings and superior cash position.
Profit before tax (PBT) increased by 35 percent year-on-year to INR 119 crore and profit after tax (PAT) 39 percent yearon-year to INR 76 crore in the quarter ended June 30, 2017.
“ABB India Limited delivered another quarter of all-round growth in a time of multiple transitions. Advanced preparation with a robust team ensured that we are well prepared to manage positive yet disruptive structural changes in India’s eco system. We delivered into projects of national importance during the quarter with our best in class, future ready technologies made in India,” said Sanjeev Sharma, Managing Director, ABB India. “Our close partnerships with customers have enabled us to better understand their business needs in the current macro environment. An effective deployment of ABB technologies will deliver new age digital productivity solutions that will catalyze the next level of growth opportunities,” he added. “Our technology solutions are set to play a significant role for a nation riding the wave of development across utilities, industry, infrastructure and transportation.”
Orders grew 13 percent in the second quarter and 20 percent in H1 of 2017 reflecting our organic growth strategy. Large orders remained muted as decisions on government initiatives and private investments were stalled in anticipation of upcoming tax restructure. Base orders were the key contributor with industry turning to improving operational efficiencies through technology and digital upgrades including robotics automation. ABB strengthened its own digital asset health management offering to support the transformation of the Indian industry with the launch of its remote drives service center. Focus on 24×7 reliable Power to All resulted in continued focus on state utility infrastructure including a wider reach to remote locations while balancing burgeoning renewable input. Strategically leveraging the extensive installed base sustained strong growth in service orders. Export orders continued the uptrend in the year with a focus on power networks and industrial efficiency.
Orders received for the second quarter were INR 2,301 crore. The highest ever order backlog of INR 12,094 crore, as of June 30, 2017, provides solid visibility for future revenue.
Shares of ABB India Limited was last trading in BSE at Rs.1458.7 as compared to the previous close of Rs. 1452.65. The total number of shares traded during the day was 141332 in over 9931 trades.
The stock hit an intraday high of Rs. 1548.4 and intraday low of 1440. The net turnover during the day was Rs. 212065362.