ABB FY06 net up 56% at Rs 340cr, splits stock 1:5

Riding high on the execution of new orders and conversion of backlog orders, ABB India posted a 56% increase in cumulative net profit at Rs 340.3 crore for FY06 as against Rs 218.7 crore in FY05. Revenue for FY06 touched Rs 4,347.7 crore, 44% higher than the previous year. Earnings per share grew by 56% to Rs 80.30 in FY06 from Rs 51.60 in FY05.

For the fourth quarter ended December 31, 2006, net profit increased 43% to Rs 135 crore year-on-year. The company booked revenue of Rs 1,443.7 crore in Q4FY06, 44% higher than the same period in the previous year.

The company also announced a stock split of 1:5 i.e every share of Rs 10 each is being split into five shares of Rs 2 each.

"The growth was driven by the speed of new orders execution and conversion of a healthy backlog order. We booked several turnkey project orders from power utilities, industry customers and for integrated building solutions. New revenue streams continued to make an increasing contribution to support core business growth," Ravi Uppal, vice chairman and managing director, ABB India, said today.

Uppal said the firm would invest Rs 250 crore over the next two years in adding capacity for developing new products. "Bulk of the investment will take place in Karnataka. We are also planning factories in Delhi, Baroda and Nasik," he added.