ABB India Q2CY2019 Results: Better revenue mix and capacity utilization power PAT 57%
ABB India Q2CY2019 Results: Driven by better revenue mix and capacity utilization the ABB India has registered YoY PAT (Profit After Tax) of 57 per cent.
ABB India Q2CY2019 Results: On account of double-digit growth across energy, process industries, transportation and infrastructure sectors, ABB India orders have grown 23 per cent YoY and driven by better revenue mix and capacity utilization the company has registered YoY PAT (Profit After Tax) of 57 per cent. The company announced these growth numbers in its April-June quarter review on July 26th.
Speaking on the Q2CY2019 results of the company Sanjeev Sharma, Managing Director, ABB India said, “As the market gets back into action post the electoral mandate, ABB India has closed the second quarter of CY2019 with consistent growth in orders and profitability and a solid cash position. H1 2019 was also wrapped with double-digit growth in all the key performance indicators,” adding, “Sectors like transportation, process industries, EPC, energy, and infrastructure have been driving growth with digital value adds from sectors like data centers, food and beverage, and OEMs during Q2. The domestic growth has been ably supported by the export growth trajectory despite global volatilities.”
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Elaborating upon the orders, Managing Director of ABB India said that base orders were up by 16 per cent YoY for Q2CY2019, led by growth across all large businesses. Total orders for the quarter increased to Rs 1,989 crore. The quarter was marked by a growth in industrial automation (IA) orders with increased order inflow from specialized applications like e-house, digital solutions for mining, instrumentation and blending and control applications in energy and process industries. IA also received the first of its kind order for whitelisting cybersecurity solution on distributed control systems for a petrochemical major. However, delayed decisions in a mixed market resulted in overall lower service orders for the business.
The second-quarter revenue was Rs 1,726 crore. A strong focus on execution of order backlog, increased penetration to tier2 cities, improving channel partner business led to the positive movement in the quarter. Manufacturing facility expansion for mid-range LV motors and a customer center for drives were opened during the second quarter at Faridabad to cater to increasing customer demands.
"Consistent delivery of profitable growth continues, and the Company reported a profit before tax (PBT) of Rs 113 crore and profit after tax (PAT) of Rs 70 crore on better price management, higher volumes and services in select businesses. Operational EBITA stood at Rs 134 crore. The company continued its journey on strong cash performance and thereby reported a cash position of Rs 1,311 Crores at the end of the quarter," said Sanjeev Sharma of ABB India.
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