ABB Ltd India, a provider of power and automation technologies, today reported a massive drop of 86 per cent in its net profit at Rs 11.5 crore for the third quarter ended September 30, 2010 compared to the year ago period.
The adverse impact on profit was mainly on account of lower price realization, relatively lesser revenues and continued costs on exit from rural electrification business.
Its revenues for the quarter were down by 8.2 per cent to Rs 1,334 crore compared to the same period last year.
The company received orders worth Rs 2,031 crore during the quarter ended September 30, 2010, compared with an order intake of Rs 1,893.2 crore, showing a growth of 7.2 per cent over the corresponding quarter of last fiscal.
The company’s order backlog increased to Rs 9,178 crore as of September 2010.
The strong order backlog situation provides significant visibility for the coming quarter across the business segments.
The major portion of the backlog constitutes large projects with long gestation periods.
The company continued to remain debt free as in the past.
Commenting on the performance during the third quarter, Biplab Majumder, vice chairman and managing director, ABB India said, “We see that the market for our power and automation solutions is buoyant and orders for the company are on a growth path and the future revenue is secure.”
However, the exit costs from the non-core businesses continue to impact the results in the short term, he said.
