ABB net plunges on exit costs, pricing pressure

ABB net plunges on exit costs, pricing pressure

Mumbai: India’s ABB Ltd, unit of swiss engineering group ABB, posted a 545 fall in quarterly net profit on certain exit costs in some projects and increasing pricing pressure in the market, it said.

ABB Ltd posted a net profit of Rs383 million compared to Rs836 million a year ago, on a marginal net sales drop of 4% to Rs14.46 billion in April-June quarter.

“The market continues to be a challenge, especially on the utility side," vice chairman and managing director Biplab Majumder said in a statement.

The engineering firm’s order intake during the quarter was also sluggish and plunged 42% to Rs12.35 billion from the year-ago quarter. However, its order backlog was up 12% to Rs85.32 billion, it said.

“Orders were impacted due to delays in conclusion of a number of large projects...and continued price pressure in the market," it said, adding it will focus on large opportunities in power projects coming up in the later part of the year.

On 27 July, its swiss parent announced that it had increased its share holding in the Indian unit to 75% by lapping up about 23% additional shares for up to $965 million.

At 3 p.m, shares in the firm were down 4.2% to Rs810.9 in a Mumbai market that was down 0.7%.