ABB India profit up 62% to ₹306 crore

In the same quarter last year, the company had earned a net profit of Rs. 194 crores.

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 growing order backlog as of December 31, 2022 6,468 crore, which provides revenue visibility and is well placed to support growth plans in the coming quarters.

The growth during the quarter (Q4 CY2022) was driven by large value orders in segments such as data centers in industrial solutions and electrification. In motion, better penetration in sectors such as railways, metals, rubber and food & beverages and increased presence in tier 1 and 2 cities drove the growth.

The cash position of the company remains strong at Rs. 3,616 crore at the end of 2022 as compared to Rs. 2,688 crores in 2021.

“Profit before tax (before exceptional items and one-offs) for CY2022 was at 1,024 crore and the profit after tax was 1,026 crores. PAT for CY2022 includes an extraordinary item 339 crore from profit on sale of turbocharger business. For Q4 CY 2022, profit before tax (before exceptional items and one-offs) was at 400 crore, up 83 percent YoY and the profit after tax was 306 crore, up 58 per cent YoY,” the company said.

Volume growth, strong value realization, cost optimization, and improved revenue mix were key factors that supported growth throughout the year.

Based on the business performance and potential in the current markets, the Board of Directors recommended a dividend of Rs. 5.50 per share (275%), subject to the approval of the shareholders in the ensuing Annual General Meeting.

Speaking on the performance, Sanjeev Sharma, Country Head & Managing Director, abb india Said, “I share the pride of the ABB India team in achieving back order volume of Rs 10,000 crore, up to the pre-demerger level of the portfolio. Profit before exceptional items tripled since calendar year 2019 and is a direct result of consistent delivery by all of our divisions with a focus on superior customer experience.

“The October-December (Q4 CY 2022) quarter witnessed growth across multiple market segments and performance parameters, complemented by good execution for the domestic market and export customers with responsive service. Adequate creation of order backlog will help us maintain the pace of execution,” he added.

“Our consistent cash build puts us in a strong position to continue to make our investments to effectively serve customers and markets and prepare for the future. In our ESG commitments, I am pleased to announce that we have worked on reducing our Scope 1 and 2 GHG emissions compared to the 2019 baseline, led by an enthusiastic team across businesses and locations. We have certified all our factory locations as green factories and have realized the Renewable Power 100 target of sourcing renewable electricity with onsite production and procurement,” concluded Sharma.