ABB India gains after strong Q2 performance

10 Aug 2022 , 12:47 PM

The company said that all the business areas registered growth compared to the quarter in the previous year. Electrification had a good run with expanded operations, robust backlog and better supply chain coordination. Faster conversion of backlog and export led growth in large motors division led to uptick in Motions revenue performance. Successful order backlog execution drove revenue growth in Process Automation especially conversions of systems orders with energy, paints and steel majors. Robotics last year had a one-time conversion of a significant electronics book and bill order and this quarter was impacted in a limited way by supply chain constraints. A range of commissioning included advanced process controls for a lime kiln production for a paper major for Process Industries and phase-wise commissioning of Al enabled city gas distribution network in Energy Industries in Process Automation. The Robotics and Discrete Automation business completed a landmark paint project for an auto major. The quarter also witnessed a swift commissioning of a control technology upgrade for a petrochemical major to improve uptime and better reliability. Operational EBITA improved by 158% to Rs 227 crore in Q2 2022 from Rs 88 crore in Q2 2021. Operational EBITA margin was 11.1% in Q2 2022 as against 6.2% in Q2 2021. Profit before tax in Q2 2022 stood at Rs 196 crore, up by 118% from Rs 90 crore in Q2 2021. This was mainly driven by better price realizations, capacity utilization, revenue mix and volumes. While profitability improvement were witnessed across all the business areas, continued fluctuating commodity prices and currency volatility remain key external headwinds. The companys cash position stood at Rs 2,787 crore at the end of Q2 2022. Total orders for the quarter were at Rs 2,767 crore, up 64% YoY. Electrification, Motion, Process Automation and Robotics and Discrete Automation registered a healthy growth in orders for the quarter. This was led by Process Automation with significant orders from the paint industry and cold rolling mills. The Motion business also posted growth from sectors such as railways, renewable energy, F&B, and mining as well as, process industries such as steel and chemicals. In Electrification, all the divisions registered growth and were able to convert a lot of the pent-up opportunities especially in the smart power, building and infra and distribution solutions businesses. Robotics and Discrete Automation business clocked higher paint orders. ABB India continues to have a strong order backlog of Rs 5,995 crore as of 30 June 2022, an increase of 31% YoY. With respect to future outlook, ABB India said: ?A combination of strong order backlog supported by an ongoing strong demand environment and presence in diversified segments is expected to continue bolstering the companys performance.? ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation. Powered by Capital Market – Live News