ABB India tumbled 3.04% to Rs 908 after the company reported 76.66% drop in net profit to Rs 16.28 crore on 42.88% fall in net sales to Rs 985.78 crore in Q2 June 2020 over Q2 June 2019.
Profit before tax (PBT) stood at Rs 21.41 crore in Q2 June 2020, falling 81% from Rs 112.66 crore in Q2 June 2019. Total tax expense stood at Rs 6.66 crore in Q2 June 2020, down 85% compared with Rs 42.92 crore in Q2 June 2019.ABB said the impact caused by lower revenues during the quarter was offset to a reasonable extent by various cost saving initiatives that were implemented by the company as well as favorable forex valuations.
Commenting on company's performance, Sanjeev Sharma, Managing Director, ABB India "ABB's business model resilience and robust fundamentals kept its strength despite interim disruptions on account of the COVID-19 crisis and lockdown. We will be strong on riding through the ongoing crisis by focusing our resources on the right business segments that are expected to return to growth and normalcy while servicing all our customers with remote and onsite services. Our business teams have high vigor to deliver an even higher value-added customer experience by leveraging our digital technologies. Automation and focus on efficiency are an integral part of the new economy and many of our value-added solutions will enable us to differentiate in the market and maintain our leadership position."
The company received orders worth Rs 1200 crore in Q2 June 2020 as against Rs 1989 crore in Q2 June 2019. During the quarter,the company succeeded in securing orders in varied sectors,includingpower distribution equipment, automation projects for process industries, food and beverage and electronics. Sectors with continued investment include, rail infrastructure, industrial buildings as well as water and waste-water.
In its outlook, ABB said, "As global uncertainty continues due to the COVID-19 situation, local markets are expected to remain subdued with diminished per capita income. The company shall continue to strengthen customer engagements vide voice of customer, channel meets, webinars and virtual campaigns that will aid the recovery period in the new normal. Additionally, our India focused portfolio, customer value discovery workshops and digital platform leadership makes us well positioned to navigate the crisis impacted market. In order to tide over the current situation, focus on the right sectors like F&B, data centers, pharmaceuticals, energy, chemicals, and railways & metros, which are likely to demonstrate selective shoots of growth, will be critical."
ABB India is engaged in power and automation business in India.
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