ABB India Ltd: profitable growth in subdued markets

  • Next Level strategy helps accelerate overall performance
  • Short cycle orders drive revenue growth
  • Operational efficiencies lead to yoy margin improvement
    Bengaluru, April 25, 2016: ABB India Limited, reported results for the first quarter ended March 31, 2016.

    Key figures:Rupees in crore
    Q1 2016Q1 2015
    Orders1,8301,856
    Revenue2,0001,815
    Profit before tax10781
    Profit before tax %5.44.5
    Profit after tax7154
    Profit after tax %3.53.0
    Operational EBITDA*169146
    Operational EBITDA %8.58.0
    * Operational EBITDA: Earnings before interest and taxes (EBIT) excluding depreciation and amortization, adjusted for i) unrealized gains and losses on derivatives (FX, commodities, embedded derivatives), ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, iii) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities), iv) restructuring and restructuring-related expenses, and v) acquisition-related expenses and certain non-operational items.

    Orders
    The company received orders worth Rs 1,830 crore in the first quarter of 2016. Investments in emerging segments, energy efficiency, urbanization and projects to upgrade the grid compensated for the lack of traction in the process industries. Breakthrough order for 132kV GIS substation and one of the largest orders for analyzers in the petrochemical sector marked the period under review. Large orders, especially those based on industry capex, remained scarce as customers continued to delay investment decisions on low demand and under-utilized capacity.

    Focus on our external markets, led to a double digit growth in export orders with a healthy product and systems mix.

    There is a steady order backlog of Rs 7,804 crore as of March 31, 2016.

    Revenue
    At Rs 2,000 crore, 2016 reported the highest first quarter revenue in the last five years. Demand for technologically driven products, coupled with the focus on make in India across growth areas in industry and infrastructure supported divisional revenue expansion. Disciplined execution and a steadfast commitment to cash over revenue also contributed to the Company closing the quarter with a positive cash position.

    Profit
    Continuous focus on localization and engineering, while improving operational efficiencies contributed to the steady growth in profitability. Investments made in strengthening operations yielded results by augmenting volumes and stabilizing cost structures. During the quarter, the company posted a profit before tax of Rs 107 crore and profit after tax of Rs 71 crore.

    “Our best-in-class solutions and services portfolio has high market relevance for our existing and emerging customers across utilities, industry and infrastructure& transport segments. We are determined to deliver positive experiences to our diverse customer base, which is core to our strategy for profitable growth even in subdued markets,” said Sanjeev Sharma, CEO & Managing Director, ABB India Limited. “Our technology portfolio programs are well aligned to support our country’s sustainable growth ambitions with “make in India”, “power to all”, harnessing renewable energy, rapid transportation and urbanization, digital technologies and “skill India” initiatives. This lays the foundation for future growth even in uncertain markets.”

    ABB (www.abb.com) is a leading global technology company in power and automation that enables utility, industry, and transport & infrastructure customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in roughly 100 countries and employs about 135,000 people.



    For more information please contact:

    Corporate Communications, ABB India Ltd.

    Name: Sohini Mookherjea
    Tel: + 91 80 22949123
    Fax: + 91 80 22949148
    email: sohini.mookherjea@in.abb.com
    Name: Peter Stierli
    Tel: + 91 80 22949120
    Fax: + 91 80 22949148
    email: peter.stierli@in.abb.com

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