ABB India profit rises 62% to ₹306 crore
2 min read 10 Feb 2023, 10:14 PM ISTThe company continues to have a strong and consistently growing order backlog as of December 31, 2022, at ₹6,468 crore
PremiumGlobal technology company ABB India on Friday reported a 62.3% YoY jump in net profit at ₹306 crore for the fourth quarter that ended 31 December, 2022.
In the corresponding quarter last year, the company posted a net profit of ₹194 crore.
ABB India achieved a significant milestone in order booking by reaching ₹10,028 crore in CY2022 and ₹2,335 crore for Q4 CY2022.
The company continues to have a strong and consistently growing order backlog as of December 31, 2022, at ₹6,468 crore, which provides revenue visibility and is well aligned to support growth plans in the coming quarters.
The growth during the quarter (Q4 CY2022) was led by large value orders in industrial solutions and segments like data centers in Electrification. In Motion, better penetration in segments like railways, metals, rubber and food and beverage and enhanced presence tier 1 and 2 cities spurred growth.
The company’s cash position continues to remain robust at Rs. 3,616 crore at the end of 2022 vis-a-vis Rs. 2,688 crore in 2021.
“For CY2022 profit before tax (before exceptional items and one-offs) was at ₹1,024 crore and the profit after tax was at ₹1,026 crore. The PAT for CY2022 includes an exceptional item of ₹339 crore from the profit on the sale of the turbocharger business. For Q4 CY 2022, profit before tax (before exceptional items and one-offs) was at ₹400 crore, up 83 percent Y-o-Y and profit after tax was ₹306 crore, up by 58 percent Y-o-Y," the company said.
Volume growth, strong price realizations, cost optimization, and improved revenue mix were key factors which aided growth throughout the year.
Based on the business performance and the potential in current markets, the Board of Directors recommended a dividend of Rs. 5.50 per share (275%), subject to the approval of shareholders at the forthcoming Annual General Meeting.
Speaking on the performance, Sanjeev Sharma, Country Head and Managing Director, ABB India said, “I share ABB India team ‘s pride to have gained back order volumes to INR 10,000 crore to pre-demerger level of the portfolio. The profit before exceptional items has grown three times since CY2019 and is a direct result of consistent deliveries with focus on enhanced customer experiences by all our divisions.“
“The Oct-Dec (Q4 CY 2022) quarter has seen growth across multiple market segments and performance parameters, complemented by good execution for domestic market and export customers with responsive service. A substantial build-up of the order backlog will help us sustain the performance momentum," he added.
“Our consistent cash build puts us in a strong position to continue our investments to serve customers and markets effectively and prepare for the future. In our ESG commitments, I am happy to announce that we have delivered on reducing our Scope 1 and 2 GHG emissions as compared to the 2019 baseline led by a passionate team across businesses and locations. We have also certified all our factory locations as green factories and realized the Renewable Electricity 100 goal of sourcing renewable electricity with onsite generation and purchase," Sharma concluded.
