Power equipment and automation major ABB's India unit Tuesday reported a 30 per cent rise in its third-quarter net profit on increased order flow.
The swiss engineering company's net profit in the July-September quarter at Rs 108.34 crore was higher than Rs 83.39 crore in the same period previous year, it said in a statement here.
The company, which follows January-December period as its financial year, said net profit growth was led by differentiated portfolio mix and digital value additions.
Revenue was up 30.77 per cent at Rs 2,515.36 in July-September as against Rs 1,923.4 crore reported in the corresponding period of 2017-18.
"We have delivered another satisfying quarter of increased orders, improved revenues and step-up in profits. Profitable growth was supported by base orders and the successful execution of our quality order backlog. All divisions registered double-digit growth benefitting from technology solutions for the local and international markets," said Sanjeev Sharma, Managing Director, ABB India.
Orders went up by 22 per cent to Rs 2,355 crore.
"Relentless execution is reflected in the consistent productivity enhancement, focus on managing costs and improving net cash position. ABB's market-leading 'ABB Ability' digital offerings are driving the next level of growth in markets for process industries, food, and beverage, smart cities, mobility solutions, and data centers," he added.
ABB said transportation remains a major growth area with orders from railways for power equipment as well as electric propulsion systems in the quarter.
During the quarter, the company received an order for distributed control systems (DCS), including the electrification of a control room for the waste-water management sewage treatment plant (STP) of a new smart city in Gujarat.
Improved opportunities for cement, oil and gas, and mining opportunities were other highlights of the quarter, the statement said, adding that propelled by the global growth in renewable energy and industrial energy management, export orders continued its solid growth trajectory.
The order backlog as of September 30, 2018 is Rs 11,368 crore and is expected to provide revenue visibility for the coming quarters.
ABB said as the domestic market readies itself for elections across various states, the multiple government initiatives in renewable energy, transportation, digitalisation, and smart cities are likely to provide the levers for sustainable growth in the medium to long-term.
The initial impact of industrial recovery is being felt across certain sectors like steel, mining, oil and gas and could retain a similar pace for the medium term. "Despite global headwinds of geopolitical trade tensions, fiscal consolidation and volatility in commodity prices and forex, ABB is well-positioned to tap into these opportunities for medium to long-term profitable growth," the statement said.
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