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Informist, Monday, Nov. 4, 2024

 

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--ABB India Jul-Sept net profit INR 4.40 bln
--Analysts saw ABB India Jul-Sept net profit INR 4.81 bln 
--ABB India Jul-Sept revenue INR 29.12 bln vs INR 27.69 bln year ago 
--ABB India Jul-Sept net profit INR 4.40 bln vs INR 3.63 bln year ago 
--ABB India Jan-Sept revenue INR 88.23 bln vs INR 76.89 bln year ago 
--ABB India Jan-Sept net profit INR 13.43 bln vs INR 9.03 bln year ago 
--ABB India Jan-Sept revenue INR 88.23 bln vs INR 76.89 bln year ago 
--ABB India Jan-Sept net profit INR 13.43 bln vs INR 9.03 bln year ago

 

By Narayana Krishna

 

HYDERABAD - ABB India Ltd. on Monday reported a net profit of INR 4.40 billion in Jul-Sep, up 21.4% from a year ago, but below the Street estimates of INR 4.81 billion. The profit growth in Jul-Sept was slower than the previous two quarters. While a fall in raw material costs boosted growth in net profit, lower execution of the order book weighed on it.

 

The heavy engineering company's revenue rose 5.2% on year to INR 29.12 billion in Jul-Sep. This is the lowest growth in revenue in 14 quarters. Though analysts were bullish on ABB India's September quarter revenue led by a robust order book, the company posted much lower numbers than the estimate of INR 32.5 billion.

 

Sequentially, the Bengaluru-headquartered company’s net profit fell 0.7%, while revenue rose 2.9%.

 

ABB India reported new orders of INR 33.42 billion in Jul-Sept, with the order backlog at INR 99.95 billion, the company said in a press release. The fresh order accruals were led by the electrification division as demand for power distribution-related products was robust, the company said.

 

ABB India said the long-cycle orders were increasing in the overall order book, backed by the government-led capital expenditure revival emerging from diversified sectors like transportation, metals and data centres segments. The large orders provide each division the flexibility to leverage opportunities, entailing the conversion of orders into revenue within timeframes, the company said.

 

The Jul-Sept revenue growth was driven by focused execution of backlog orders, the company said.

 

ABB India's earnings before interest, tax, and amortisation, or EBITA, margin for the quarter improved by 340 basis points from a year ago to 16.4% led by lower input costs. Analysts had expected the EBITA margin to be in the range of 17.2% to 19.2%. The EBITA for the quarter was INR 4.78 billion, up from INR 3.61 billion a year ago, but lower than analysts' expectation of INR 5.94 billion.

 

The company reported a 6.3% year-on-year fall in its input costs to INR 14.13 billion. ABB India had cash reserves of INR 50.01 billion as of Sept. 30. The company's other income rose by 20.9% on year to INR 928.9 million.

 

ABB India's total expenses in Jul-Sept rose 2.0% on year to INR 24.08 billion. Other expenses rose 29.9% on year to INR 5.20 billion. The tax outgo for the quarter increased 28.3% on year to INR 1.57 billion.

 

For Jan-Sept, the company reported a 48.7% increase in net profit to INR 13.43 billion. The revenue in the first nine months of 2024 rose 14.8% on year to INR 88.23 billion.

 

On Monday, shares of ABB India ended at INR 7360.85 on the National Stock Exchange, down 0.9% from its previous close.   End

End

 

Edited by Saji George Titus

 

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