ABB India's standalone net profit rose 8.4% to about Rs 85 crore on 7.64% fall in total revenue from operations to Rs 1,612.17 crore in Q3 September 2020 over Q3 September 2019.
Standalone profit before tax (PBT) rose 1.12% to Rs 113.96 crore in Q3 September 2020 as against Rs 112.69 crore in Q3 September 2019. Total tax expense for the quarter dropped 15.96% to Rs 28.47 crore as against Rs 33.88 crore in Q3 September 2019. The Q3 result was declared during market hours today, 5 November 2020.
Operational EBITA skid 13.44% to Rs 103 crore in Q3 September 2020 from Rs 119 crore in Q3 September 2019. The EBITA margin stands at 6.4% in Q3 FY21 as compared to 6.8% in Q3 FY20.
Total orders for quarter declined to Rs 1308 crore in Q3 FY21 compared with Rs 1606 crore in Q3 FY20. ABB India continues to have a stable order backlog as of 30 September 2020, at Rs 4,390 crore, widely spread across various end markets.
The overall orders remain impacted given the uncertainty in the economic environment and extended decision-making cycles. Export orders continued to experience limited momentum. Service and maintenance orders witnessed a decline with customers postponing decisions to future quarters, keeping in mind the logistical challenges being faced during the pandemic. The quarter was marked by orders from the transportation, pharma, energy and water segments.
The company continues to focus its efforts on cash collections and in maintaining a lean asset base, thereby sustaining its consistent cash position, which at year to date (YTD) stood at Rs 1,598 crore.
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In its outlook, ABB India said that the impact of COVID-19 continues to weigh on the short-term outlook across many end-markets, particularly in conventional power generation, automotive, marine and buildings. Some end markets such as electrical distribution, transport, data centers, consumer electronics, pharmaceuticals and food and beverage continue to show relative resilience. The Government in India has also unveiled various proposals to make manufacturing in India more self-reliant, which should drive end-to-end manufacturing in the country. ABB India will continue to engage closely with customers through various virtual modes and leverage select pockets of growth with its sustainable, digital and wide-ranging technology.
Sanjeev Sharma, the managing director (MD) of ABB India, stated: "ABB's agile and resilient customer engagement has led to an improved sequential order inflow, supported by good recovery in a few market segments. We have seen consistent improvements over the past couple of months with improved order execution across some key segments and industries, which are ramping up production post the lockdown. Our team has continued to work with high safety protocol during the COVID-19 lockdown phases, leveraging automation and remote support technology for enriched customer experience. We remain committed to seamless delivery of customer demand while maintaining a strong order backlog. Our focus on key relevant growth sectors has started giving good results while we engage & support other sectors as they recover to provide growth in the future."
Shares of ABB India rose 1.45% to Rs 893.20 on Thursday.
ABB India is engaged in power and automation business in India.
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