ABB India's net profit (from continuing operations) jumped 68.79% to Rs 202.50 crore on 19.19% rise in revenues to Rs 2,119.74 crore in Q3 2022 over Q3 2021.
The increase in the net profit was mainly driven by solid execution after considering a one-time extraordinary gain (Rs 46 crore) on the final divestment of the turbo charger business.
The company said that it reported strong execution momentum on the back of healthy order book, solid customer demand, and better internal efficiencies in execution led to the positive movement in the quarter.
Revenue in electrification business grew by 27% YoY, supported by higher order booking and uninterrupted operations and at the same time Motion business saw growth across all divisions (26% YoY), while Process Automation remained flat. Revenue execution in Robotics and Discrete Automation continued to be held back by supply chain impacts, although access to semiconductors is somewhat improving.
The company reported a profit before tax (before exceptional items and one-offs) of Rs 229 crore for the quarter mainly driven by higher capacity utilization, operational efficiency and productivity, and cost optimization. The growth in profit reflects 39% uptrend year on year. ABB India continues to focus on profitability improvement across all business segments to mitigate the impact of external headwinds like inflation and currency volatility.
Operational EBITA surged 52.38% to Rs 256 crore in Q3 2022 from Rs 168 crore in Q3 2021. Operational EBITA margin improved to 12.1% in Q3 2022 as compared to 9.4% posted in Q3 2021.
ABB India's cash position continues to remain robust at Rs 3,181 crore at the end of Q3 2022 as against Rs 2,481 crore reported in Q3 2021, marking an increase of 28%.
Total orders for the quarter stood at Rs 2,634 crore in Q3 FY22, registering a growth of 38% from Rs 1,909 crore recorded in the same period last year.
The company continues to have a strong order backlog as of 30 September 2022, at Rs 6,519 crore, up 37% YoY, which provides revenue visibility and is well aligned to support growth plans in the coming quarters, the firm stated.
During the quarter, ABB India expanded and upgraded its Smart Power factory at Nelamangala, Bengaluru, making it one of the first in India to transition to Industry 5.0 standards, with human and cobots collaboration.
Commenting on the company's performance, Sanjeev Sharma, managing director of ABB India said, The strong performance for the quarter can be attributed to ABB India's expanding customer base and its industry-leading product portfolio, which is aligned to growing market demand. We continue to focus on our processes to be more efficient and productive for ensuring on-time execution of our backlog. Our customers across various market segments have been scaling up, accelerating the demand for innovative, energy-efficient and reliable digital solutions that ABB India offers.
He further added, With a steady margin growth and solid cash position, we continue to make investments in improving operational efficiencies and expanding capacity. Our ESG goals continue to drive the business agenda at ABB India, much in line with the ABB Group Sustainability targets 2030.
With respect to its outlook, ABB India said, The Indian economy seems steady in its path for growth despite geopolitical uncertainties, tightening of monetary conditions globally, and inflation. Momentum in economic activity is expected to continue with thrust from the central government on infrastructure development, rail and power sectors. Several policy initiatives have been put in place to encourage import substitution and increase exports, which, along with a strong demand environment, provide a hedge against mounting global challenges.
ABB India is well-positioned to benefit from these policy initiatives along with ongoing capex cycles on account of enhanced internal efficiencies, presence in diversified sectors, and strong capabilities in electrification and automation. The company continues to focus on order wins across sectors and seamless execution. It will continue to engage closely with its customers and provide collaborative solutions through innovation on the back of technological trends, digitalization and decarbonization.
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 slipped 3.63% to Rs 3,040.85 on the BSE.
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