On a standalone basis, ABB India's net profit soared 118.64% to Rs 141.33 crore on 7.02% increase in total revenue from operations to Rs 1,629.15 crore in Q1 FY21 over Q1 FY20.
Operational EBITA soared 158.13% to Rs 111 crore in Q1 FY21 from Rs 43 crore in Q1 FY20. Operational EBITA margin stood at 6.8% in Q1 FY21 as against 2.8% in Q1 FY20. Profit margin improved to 9.2% in Q1 FY21 as compared to 4.3% in Q1 FY20.
The company reported a robust revenue from operations on the back of successful backlog conversion. All divisions witnessed good momentum in deliveries across various market segments. Service revenues, which were earlier impacted due to logistic challenges are slowly witnessing an upturn. During the quarter the company provided electrification and flow meter solutions for clean drinking water for Surat Smart City in Gujarat, commissioned low voltage switchgear systems for private utilities, and installed smart sensors and soft starters to reduce water usage in Shimla, Himachal Pradesh.
The company also reported a strong profit before tax mainly driven by operational improvement initiatives, capacity utilization and reduced expenses. It included a one-time gain of Rs 75 crore due to disposal of an asset as a part of footprint rationalization initiative. The company's cash position continues to remain robust at Rs 2,528 crore at the end of Q1 FY21 from Rs 1,464 crore in Q1 FY20.
The total orders stood at Rs 1,825 crore for the quarter reflect the company's continuous journey of improvement on a sequential basis, representing growth of 24% Q-o-Q (quarter-on-quarter) over Q4 2020, while being lower by 7% Y-o-Y (year-on-year) owing to a large order previous year. The quarter was also marked by orders in high growth segments like pharmaceutical, e-mobility, renewables, etc.
In its outlook, ABB India stated that "the global economy is facing headwinds due to the pandemic, India has come under severe pressure with a sharp increase in cases and subsequently a restriction in activities owing to the second wave of COVID-19. For now, we are continuing to see marginal recovery in certain segments and industries like datacenters, renewables, electronics, F&B and pharmaceuticals. ABB India will continue to focus on order wins and seamless execution across projects while continuing to engage closely with customers."
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Sanjeev Sharma, the managing director (MD) of ABB India, said: "The first three months of the year continued to be impacted by the effects of the COVID-19 pandemic and the subsequent supply & demand disruptions across several market segments. At ABB India we con- tinue to keep our employees', contractors', suppliers' and customers' health and safety as our highest priority. With a stable and growing order backlog, robust cash reserves, cost optimization initiatives and business continuity plans, we believe that we are reasonably positioned to deliver on our ambitious goals while managing renewed market uncertainty."
"As a highlight, during the past quarter, we have secured several orders in high-growth segments such as robotics and automation solutions for the world's largest scooter factory located in India. Overall, ABB India has recorded a significant sequential order increase with improvements across all our divisions, he added.
ABB India is engaged in power and automation business in India.
Shares of ABB India rose 1.31% to close at Rs 1,384.80 on BSE. The stock hovered in the range of Rs 1,366.30 to Rs 1,401 during the day.
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