ABB Power Sept qtr profit jumps multi folds to Rs 34 cr

ABB Power Products and Systems India on Friday posted multifold jump in net profit to Rs 34.32 crore for September quarter 2021 due to lower base effect.

The net profit of the company in the year-ago quarter was Rs 4.76 crore, a BSE filing stated.

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The company follows January-December financial year.

"Profit after tax was up 614.6 per cent year-on-year to Rs 34.3 crore primarily because of a low base of 2020 and our unwavering efforts at stabilizing our supply chains and improving other efficiencies," it said.

Total income stood at Rs 850.60 crore in the quarter under review compared to Rs 946.31 crore in the same period a year ago.

"There appears to be a gradual recovery in demand, driven by high-growth segments from rail to renewables. We secured meaningful order wins in the September quarter and made solid headway toward our sustainability goals. Yet supply chain constraints, especially from port delays and equipment shortages, weighed on revenue growth,? said N Venu, MD and CEO, India, Hitachi Energy.

Hitachi Energy in India operates under the legal entity name ABB Power Products and Systems India Ltd.

"While green shoots of economic revival are starting to become more visible, we remain watchful of potential risks from Covid-19 and other venues,? he added.

The company received orders worth Rs 979 crore in the September quarter, up 10 per cent year-on-year, driven by the transport sector and industry.

A considerable chunk also pertained to orders in the renewable energy sphere, with solar and hydro projects generating significant demand for the company's high voltage and grid integration products.

Transformers drew strong interest from rail and metro companies, alongside top utilities to cater to rising power demand, ABB said.

Exports remained healthy, contributing more than 18 per cent to the order book in the September quarter, it added.

The company received breakthrough high voltage orders from key utilities in Latin America and eastern Africa as well as an order for the power system studies from an FMCG company in south Asia.

As of September 30, 2021, its order backlog stood at Rs 4,896.5 crore, which will unlock revenue streams in the coming months, it stated.