ABB India Q1 2019 profit rises 95%, revenue surges 18%
ABB India Limited announced its first quarter (Jan–Mar) CY2019 results. The company reported a profit before tax (PBT) of Rs 139 crore and profit after tax (PAT) of Rs 89 crore during the first quarter.
ABB India Limited announced its first quarter (Jan–Mar) CY2019 results. The company reported a profit before tax (PBT) of Rs 139 crore and profit after tax (PAT) of Rs 89 crore during the first quarter driven by better capacity utilization, operational efficiencies and revenue mix. Revenues for the first quarter stood at Rs 1,850 crore, an increase of 18 percent year on year. Service revenues were up by 21 percent led by effective conversion from process industries, oil and gas and automotive. The base orders increased by 17 percent from sectors including transportation, retail, automotive, metals, cement and oil and gas. The total orders for the Power Grid business for the quarter were at Rs 670 crore and revenues were at Rs 895 crore. The business reported a PBT of Rs 42 crore and PAT of Rs 27 crore for the period under review.
“The year 2019 has started on a good note with consistent, resilient and profitable growth. A significant uptrend in profitability, cash flow and an improving order book aligned well with operational excellence initiatives. ABB’s leadership position in evolving industrial and digital market opportunities, and engagement with our large installed base gives us a good basis for resilient and sustainable growth momentum,” said Sanjeev Sharma, Managing Director, ABB India.
"Our continued customer engagements in the last several quarters have resulted in significant base order traction for our core portfolio and ABB AbilityTM solutions in multiple market segments enabling higher productivity and energy efficiency,” he added.
The company has continued the double-digit uptrend in base orders of 17%, total orders up 4%. All divisions have posted strong growth in revenues, total revenues were up by 18% in Q1. There is a improved capacity utilization and revenue mix provide a major step-up in profitability. ABB Ability digital platform and solutions witnessed increased traction in power distribution, process industries, marine and urbanization. The company also posted the demerger announcement and claimed that follow-through actions are on track.
The consumption led growth as well as opportunities driven by national building projects are projected to continue. Projects under planning showed slight uptrend in utilities, manufacturing, mining as well as for service at the start of the year, while the electricity sector remained muted. Global trade patterns and the price of crude oil are key influencing global macro indicators for the nation.