The Hindu Business Line : ABB net at Rs 30.61 cr in Q2

ENGINEERING major ABB India Ltd said its net profit for second quarter of April-June period was Rs 30.61 crore on net sales of Rs 517.42 crore. The net profit for the corresponding period of the previous year was not comparable as the company had included proceeds of sale of its metering business in the second quarter a year ago. However, operationally, profit in the April-June period of the current fiscal jumped 39 per cent from the corresponding figure a year ago.

ABB said its net profit for the first half of the current financial year was Rs 47.52 crore on sales of Rs 958.79 crore. It booked orders worth Rs 1,247.6 crore during the first half of the current fiscal, up almost 50 per cent from a year ago. This includes Rs 654.1 crore of orders booked in the second quarter which is higher by 45 per cent from a year ago. Order backlog swelled to Rs 1,299.4 crore from Rs 1,071.0 crore in the beginning of the year. "Pipeline of enquiries are very promising and we expect the momentum to be maintained" in the near future, said the Vice-Chairman and Managing Director, Mr Ravi Uppal.

The company has sold its control valve business to Kent Introl Pvt. Ltd for Rs 12.5 crore and this amount will be accommodated in the third quarter's earnings, said the Chief Financial Officer, Mr K. Rajagopal. The company had shrunk its receivables cycle to 106 days from 125 days a year ago, generating greater free cash. The company, which derived significant sales through exports, gained by its hedging strategy as Rupee softened against the US dollar during the quarter. "Our policy to hedge our entire receivables... we ultimately nullify gains and losses from exports and imports," Mr Rajagopal said.

ABB plans to invest Rs 80 crore for capacity expansion, plant upgrade and range expansion. "Close to 80 per cent of this amount has been committed," Mr Uppal said. "As part of our range expansion strategy we have added several new products this year, which include compact sub-stations, ring main units, latest generation of drives and now our recent foray into electrical wiring accessories and household/building distribution electricals," he said. "We shall continue to generate new revenue streams in addition to expanding and upgrading existing capacities and shoring up our portfolio," he added.