ABB India registers double digit growth across all divisions in Q3
Technology major ABB India Limited unveiled its third quarter (July – September) CY2018 results, registering double digit growth across all divisions. The company orders were up by 22% Y-o-Y led by consistent growth in base orders and exports, while operational EBITA increased by 68% Y-o-Y. In this quarter, the company also witnessed PAT increase of 30% Y-o-Y led by differentiated portfolio mix and digital value additions.
Encouraged by the quarterly results, Sanjeev Sharma, Managing Director, ABB India, said, “We have delivered another satisfying quarter of increased orders, improved revenues and step-up in profits. Profitable growth was supported by base orders and the successful execution of our quality order backlog. All divisions registered double digit growth benefitting from technology solutions for the local and international markets.”
He further said, “Relentless execution is reflected in the consistent productivity enhancement, focus on managing costs and improving net cash position. ABB’s market leading ABB AbilityTM digital offerings are driving the next level of growth in markets for process industries, food and beverage, smart cities, mobility solutions and data centers.”
Meanwhile, other key highlights of the third quarter (July – September) CY2018 results are:
Total orders increased to Rs 2,355 crore during the third quarter of 2018, driven by a base order growth of 16 percent. The base order growth was supported by offerings for smart factory applications and ABB AbilityTM digital solutions in sectors like food and beverage and building automation. Power infrastructure for solar segment also contributed to moderately large orders.
Transportation: Transportation remains a major growth area with orders from railways for power equipment as well as electric propulsion systems in the quarter. ABB India in Q3, provided power quality management solutions for India longest dedicated rail freight corridor project.
Water management solutions: The company's water management solutions is one of the key elements in building smarter and inclusive Indian cities. During the quarter, the company received an order for distributed control systems (DCS), including the electrification of a control room for the waste water management sewage treatment plant (STP) of a new smart city in Gujarat.
Cement, oil and gas: Improved opportunities for cement, oil and gas and mining opportunities were other highlights of the quarter. The double-digit growth in services was led by the orders in process optimization, technical information systems, and digitalization applications across select process industries.
Propelled by the global growth in renewable energy and industrial energy management, export orders continued its solid growth trajectory. The order backlog as of September 30, 2018 is Rs 11,368 crore and is expected to provide revenue visibility for the coming quarters.
Revenue and operations
Revenue for the quarter was Rs 2,515 crore, up 31 percent year on year. The quarter witnessed double digit growth across divisions with quick conversions and timely delivery. Strong execution and delivery further stabilized solid net cash position supporting revenue momentum.
Profit before tax (PBT) increased by 40 percent to Rs 165 crore and profit after tax (PAT) rose 30 percent Y-o-Y to Rs 108 crore. The continued focus on cost saving measures and the market success of ABB AbilityTM digital offerings contributed to a strong growth in profits.
As the domestic market readies itself for elections across various states, the multiple government initiatives in renewable energy, transportation, digitalization and smart cities are likely to provide the levers for sustainable growth in the medium to long term.
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The initial impact of industrial recovery is being felt across certain sectors like steel, mining, oil and gas and could retain a similar pace for the medium term. Despite global head winds of geopolitical trade tensions, fiscal consolidation and volatility in commodity prices and forex, ABB is well-positioned to tap into these opportunities for medium to long-term profitable growth.
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