ABB India surged 10.94% to Rs 2234.05 after the company's net profit jumped 76.45% to Rs 152.08 crore on 20.75% increase in net sales to Rs 1,953.93 crore in Q1 March 2022 over Q1 March 2021.
During the quarter, the company sold the turbocharger business to its wholly owned subsidiary Turbocharging Industries and Services India. In this regard, profit on sale amounting to Rs 293 crore has been disclosed as exceptional item in the financial results for the first quarter ended 31 March 2022.The company reported a profit before tax (before exceptional items and one-offs) of Rs 198 crore mainly driven by higher volumes, better product mix, and higher service content. The growth in profit reflects 53% uptrend year on year. The company continued to focus on value chain improvements to address headwinds of commodity price change and inflation.
Seamless backlog execution, contribution from exports and growth of service business contributed to the traction despite geo-political uncertainties. Electrification & Motion registered higher revenue across all its divisions. Growth in service business comprised a significant portion in growth of Process Automation revenues. Robotics business gained from higher service revenues and general industry deliverables being on track.
Total orders rose 2.14% QoQ and surged 25.53% YoY to Rs 2,291 crore in Q1 March 2022, the highest for the first quarter in the last five years.
Order backlog stood at Rs 5229 crore in Q1 March 2022, higher than Rs 4912 crore in Q4 December 2021 and Rs 4328 crore in Q1 March 2021.
"I am very proud of the team at ABB India who delivered a good start to the year by not only building but accelerating the growth momentum in the face of multiple external uncertainties. All parameters have posted solid growth in the first quarter of CY2022. The surge in orders and one of the strongest order backlog in recent times, demonstrate the high preference for ABB products and the deep customer connect. Factors like ABB technology advantage, our diverse portfolio, and global leverage have enhanced our resilience amidst geopolitical challenges and inflationary pressures," said Sanjeev Sharma, Country Head and Managing Director, ABB India. "ABB India's ESG commitments are on-track, and we published our first Business Responsibility and Sustainability Report (BRSR) as a best practice in the industry. We made good progress in our green building certification and working with resource efficiency for our customers," he added.
In its outlook, ABB India said that geopolitical uncertainties, supply chain disruptions, inflationary impact on fuel and food prices along with other commodities are key factors which are being monitored across the globe. ABB India will also look out for inflationary pressures, resurgence signs of the virus, currency fluctuations, the trajectory of supply chain disruptions and its impact on the identified market segments in the country.
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The various government projects incentivizing local production, fast tracking infrastructure projects, housing and water for all, specific measures for various sectors like solar, water, data centers, metros, etc. is likely to have incremental positive impact and provide some cushion for the macro uncertainties, the company said.
ABB India added that it would continue to focus on profitable execution of order book and leverage the strong growth momentum in identified fast recovering sectors. Also, the company is benefitting from business opportunities to render greater sustainability and efficiency in certain core sectors of energy, metals, railways & metro, and cement. it said.
ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation.
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