On a standalone basis, ABB India's net profit jumped 48.88% to Rs 57.56 crore on 12.93% decrease in total revenue from operations at Rs 1,700.76 crore in Q4 December 2020 over Q4 December 2019.
Profit before tax (PBT) rose 0.53% to Rs 80.39 crore in Q4 December 2020 over Q4 December 2019. Total tax expense for the quarter surged 18.88% to Rs 18.19 crore as against Rs 15.30 crore in Q4 December 2019. The Q4 result was declared during market hours today, 10 February 2021.
The company said it has shown resilient performance as the economy starts to show signs of recovery with strong sequential growth in operating margins. Sequentially, the quarter witnessed uptrend in revenues across all business divisions due to continued focus on execution of order backlog. Factors like export performance, service revenue with system upgrades, sluggish project performance compensated by solid product sales, helped increase revenues during the fourth quarter as compared to the earlier quarter.
Despite the challenging environment, the company sustained profitability year on year in the fourth quarter. On an overall basis, the catalysts for improved profitability include efficient opex management, better mix, improved service and product revenues, supported by a sharp focus on cost savings. The company's cash position continues to remain robust at Rs 2,207 crore at the end of 2020 as compared to Rs 1,598 crore in 2019.
Sanjeev Sharma, the managing director of ABB India, said: "2020 was a year of unprecedented challenges, but ABB's agile business model helped to navigate headwinds and deliver profitability for the year, thanks to our team pulling strongly together. During the year, we built a strong cash reserve with a focus on collections and cash optimization. With a strong order backlog, our timely execution and value adds for our customers, we remain optimistic for 2021. In light of the ongoing COVID-19 crisis, we are closely monitoring our key market segments, which are expected to gradually return to growth."
Total orders stood at Rs 1,470 crore during the quarter and at Rs 5,932 crore for the year. Pent up demand and early signs of recovery led to sequential growth in order wins. Collaboration with customers through virtual connections helped enhance engagement. During the quarter, Motion and Industrial Automation business areas both posted double digit growth Y-o-Y (year-on-year). The quarter was marked by orders in the areas of power distribution, renewables, construction, energy, and mining segments.
Operational EBITA stood at Rs 170 crore in Q4 FY21 as against Rs 109 crore in Q4 FY20, registering a 55.96% growth Y-o-Y. Operational EBITA margin stood at 10% in Q4 FY21 over 5.6% in Q4 FY20. PAT margin improved to 3.7% in Q4 FY21 compared with 3.4% in Q4 FY20.
The board recommended a dividend of Rs 5 per share, subject to the approval of shareholders at the forthcoming Annual General Meeting.
In its outlook, ABB India said it will closely monitor the shifting global trade balance and trade agreements and its likely influence on commodity prices, forex and import policies. In the domestic market, the resilient nature of certain segments and industries is reflected in the early signs of revival witnessed in data centers, renewables, electronics, food and beverage, pharmaceuticals, etc. Some end markets, particularly conventional power generation, mining and steel, continue to witness short term stress. ABB India will continue to focus on order wins and seamless execution across projects while continuing to engage closely with customers.
Shares of ABB India fell 1.16% to end at Rs 1,445. ABB India is engaged in power and automation business in India.
Meanwhile, J C Deslarzes has resigned as director and chairman of the board effective of board meeting ended today. Maria Varsellona has been appointed as non-executive non-independent director, in the casual vacancy caused by the resignation of J C Deslarzes.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
