ABB India's net profit (from continuing operations) jumped 58.03% to Rs 305.91 crore on 15.48% rise in total revenue from operations to Rs 2,426.91 crore in Q4 CY2022 over Q4 CY2021.
The company said that volume growth, strong price realizations, cost optimization, and improved revenue mix were the key factors which aided growth in profit throughout the year.
ABB India has posted a double-digit revenue growth across business areas. Seamless execution of order backlog, complemented by higher revenue from export and services and focused supply chain actions contributed to the revenue growth during the quarter and the year. Utilities followed by metals, mining, transport, chemicals, energy, buildings are some of the sectors for the augmented revenue stream.
Profit before tax (before exceptional items and one-offs) was at Rs 400 crore in Q4 CY22, recording a growth of 83% year on year.
Operational EBITA surged 45.41% to Rs 301 crore in Q4 CY22 from Rs 207 crore in Q4 CY21. Operational EBITA margin improved to 12.4% in Q3 2022 as compared with 9.9% reported in the same period last year.
Total orders for the quarter stood at Rs 2,335 crore in Q4 CY22, up 4.1% from Rs 2,243 crore recorded in the corresponding quarter previous year.
More From This Section
The increase in the orders was mainly driven by large value orders in industrial solutions and segments like data centers in Electrification. In Motion, better penetration in segments like railways, metals, rubber and food and beverage and enhanced presence tier 1 and 2 cities spurred growth. Process Automation held steady with opportunities from paint industry and energy companies. Robotics received significant traction in paint orders from automotive and auto component companies.
ABB India said that it continues to have a strong and consistently growing order backlog as of 31 December 2022 at Rs 6,468 crore, up 31.68% YoY, which provides revenue visibility and is well aligned to support growth plans in the coming quarters.
On full year basis, the company's net profit (from continuing operations) soared 92.61% to Rs 1,025.61 crore on 23.56% rise in total revenue to Rs 8,567.53 crore in CY22 over CY21. Total orders jumped 30.81% YoY to Rs 10,028 crore in the current year ended 31 December 2022.
The company's cash position continues to remain robust at Rs 3,616 crore at the end of 2022 as against Rs 2,688 crore in 2021, marking an increase of 34.52%
Sanjeev Sharma, country head and managing director of ABB Indi, said, The profit before exceptional items has grown three times since CY2019 and is a direct result of consistent deliveries with focus on enhanced customer experiences by all our divisions. The Oct-Dec (Q4 CY 2022) quarter has seen growth across multiple market segments and performance parameters, complemented by good execution for domestic market and export customers with responsive service. A substantial build-up of the order backlog will help us sustain the performance momentum. Our consistent cash build puts us in a strong position to continue our investments to serve customers and markets effectively and prepare for the future.
With respect to its outlook, the company said, ABB India will continue to be vigilant and deploy suitable hedging tools, leverage global parentage, technology pool and a diversified and deep supply chain to steer growth. The impact of the government's capital expenditure led recovery schemes and infrastructure focus are likely to continue the momentum in the company's identified growth segments including transportation, data centers, electronics, warehousing and logistics, water, renewable, food and beverage, pharma and healthcare, automotive, etc.
Meanwhile, the company's board has recommended a dividend of Rs 5.50 per share for the financial year ended 31 December 2022. The dividend, if declared, will be paid/dispatched after 4 May 2023.
ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation.
Shares of ABB India gained 1.15% to settle at Rs 3164.60 on Friday, 10 February 2023.
Powered by Capital Market - Live News