ABB Limited India, a supplier of power and automation technologies, today said its first-quarter net profit rose nine times from year earlier to Rs 59.5 crore.
Revenue for the January-March period jumped by 22.3 per cent to Rs 1,781.3 crore, compared with Rs 1,455.8 crore in the year-ago quarter, on execution of strong order backlog and higher sales of short cycle products and services. This was the company’s highest ever revenue in the first quarter of a year.
It received orders worth Rs 1,695 crore during the quarter, compared to an order intake of Rs 1,688.7 crore in the year-ago period. Its order backlog was Rs 8,329 crore as of the end of March 2011, compared to Rs 8,436 crore at the end of December 2010. Strong growth in base orders could offset the impact of lesser inflow from large orders, already under procedural clearances for subsequent quarters.
Investment in industrial activities and power infrastructure continued to be strong and showed increased market opportunity, the company said.
During the quarter, the company finalised the acquisition of operating businesses seeded in ABB Global Services and Industries to bring in more synergies in its operations. The product lines acquired include transformer insulation kit, low voltage breakers and switches, and vacuum interrupters.
The transaction was effective from April 1.
Bazmi Husain, country manager and managing director, ABB Limited India, said: “Investment in our people, coupled with a strong focus on operational excellence, is beginning to yield results. The continued focus on new revenue streams such as renewables and energy efficiency, along with increased localisation of our product offerings, will make us well positioned against the competition in future quarters.”