ABB clocks Rs 31 cr profit in JQ

ABB posted a Rs 30.6 crore net profit for the quarter ended June 2004 on revenues of Rs 527.2 crore. While revenues were up 56 per cent over the corresponding quarter last year, net profit could not be compared as ABB had factored the Rs 23.3 crore metering business sale last time.

For the quarter ended June 2003, ABB registered a net profit of Rs 45.3 crore after including the business sale. However, operational profits were up 48 per cent at Rs 48.3 crore over the same period last year.

For the half year ended June 2004, the net profit stood at Rs 47.5 crore, and revenues benefiting from the order backlog, increased 55 per cent over the corresponding period last year to Rs 976.1 crore.

Operational profit grew 62 per cent compared with the corresponding period last year to Rs 74.2 crore. Senior officials said, reducing the receivables to 106 days of sale from 125 days earlier, while freeing up working capital also increased operational efficiency.

In the first six months of the year, the company booked orders worth Rs 1,247.6 crore, up 50 per cent when compared with the same period last year. The order book strengthened to Rs 1,299.4 crore as against Rs 1,071 crore at the start of the calendar and Rs 1,073.2 crore in June 2003.

To service the mounting orders, ABB is investing Rs 80 crore to expand capacity and range. This year it has entered new ranges such as ring main units, compact sub station and drives to complete the power value chain.

Also while ABB is sizing up the household segment to add products, it exited yet another segment, the control valve business, this month for Rs 12.5 crore.

Ravi Uppal, managing director said, besides the local buoyancy, breakthroughs were achieved in globally sourced lines as well. The Indian arm is shipping drive mechanism, electronic boards and other hardware applications to ABB's operations in China, Australia, New Zealand and South American Countries, he said.

Leaning on this, exports grew 7 per cent to over Rs 100 crore during the first half. He added " The ongoing focus on power sector improvements, bodes well for us. With emerging emphasis on rural reforms, ABB India will also focus on solutions to facilitate rural electrification."

Officials said, projects accounted for 56 per cent of revenues while products for 32 per cent. and services for 12 per cent. Commenting on the major orders for the year, officials said, ABB bagged a Rs 200 crore deal from under the government's Accelerated Power Development Reforms Programme and a Rs 125 crore order from Delhi Metro for its third phase. Incidentally, ABB had executed similar orders in the first two phases too.

Besides officials added during the first half, channel sales were up 50 per cent to around Rs 200 crore, while web sales grew 100 per cent to around Rs 100 crore.