ABB India Ltd: Sustained performance in mixed markets
ABB India Limited, reported results for the third quarter ended September 30, 2016.
Third-quarter (Q3) highlights:
- Solid growth in orders
- Value generation through higher customer experience
- Continuation of improved margins trend
Key figures (INR/Rupees crore)
| Q3 2016 | Q3 2015 | YTD 2016 | YTD 2015 | |
|---|---|---|---|---|
| Orders | 2967 | 2292 | 6837 | 6042 |
| Revenues | 2055 | 1969 | 6157 | 5715 |
| Profit before tax | 124 | 95 | 352 | 266 |
| Profit before tax % | 6.0 | 4.8 | 5.7 | 4.6 |
| Profit after tax | 81 | 59 | 229 | 170 |
| Profit after tax % | 3.9 | 3.0 | 3.7 | 3.0 |
| Operational EBITA %* | 7.1 | 5.9 | 6.5 | 6.1 |
* Operational EBITA: Earnings before interest and taxes (EBIT) excluding amortization, restructuring and restructuring related expenses, gains and losses from sale of businesses, acquisition-related expenses and certain nonoperational items, as well as foreign exchange/commodity timing differences in income from operations consisting of: (i) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (ii) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (iii) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
Orders
The company received orders worth Rs 2,967 crore in the third quarter of 2016. Focus on renewables and the transportation sector continues to pave the way for growth. While base orders remained solid, the company witnessed a strong turnaround in large orders. As consolidation continues in the industry sector, utilities remained cautious and mostly continued with upgradation of technology through dry type transformers, gas insulated switchgears and substation packages.
A relatively strong order backlog of Rs 8,676 crore as of September 30, 2016 provides visibility to future revenues.
Revenue
The third quarter revenue was reported at Rs 2,055 crore. Service and exports revenue
continue to be strong as customers focused on efficiency and productivity of existing
operations. The company is well positioned with a solid execution and conversion of a robust
order backlog.
Profit
Supported by a favorable revenue mix and cost management strategies, the company, during the quarter, posted a profit before tax of Rs 124 crore and profit after tax of Rs 81 crore. “ABB’s Next Level strategy focusing on superior customer value and its market leading technologies has driven margins and consistent growth,” said Sanjeev Sharma, CEO and Managing Director, ABB India. “The government’s push for infrastructure and transportation has had positive incremental opportunities for companies. Automation and digitalization will be the key in the new era of the energy and fourth industrial revolution. ‘ABB Ability’ the new digitalization initiative coupled with path-breaking technology partnerships will be instrumental in providing an eco-system of connected devices, and intelligent systems to deliver the next level of customer experience and productivity,” he added.
ABB is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 135,000 employees.
