New Delhi:
Technology company ABB India on Wednesday reported 44% revenue growth to INR 2053 crore in Q2, April-June 2022, as against INR 1,425 crore in the same period last year. The company’s net profit increased by 115% to INR 147 crore during this period. The company also reported INR 4,021 crore revenue for Hl 2022.The company reported a Profit before tax (before exceptional items and one-offs) of INR 196 crore for the quarter and INR 394 crore for Hl 2022. This was mainly driven by better price realizations, capacity utilization, revenue mix, and volumes. While profitability improvements were witnessed across all the business areas, the c fluctuating commodity prices and currency volatility remain key external headwinds.
Profit after tax was reported at INR147crore for the quarter (Y-o-Y) and INR 517crore for Hl 2022 (Y-o-Y). The firm’s PAT for Q2 2022 stood at INR 147 crore, as against INR 68 crore, signifying a 116% YoY growth.
The company’s cash position continues to remain robust at INR2,787crore at the end of Hl 2022.
The company received fresh orders worth INR 2,767 crore in the second quarter, resulting in a growth of 64% YoY. The cumulative order book of ABB India stands at INR 5,995 crore as of June 30, 2022.
The company said that a combination of a strong order backlog supported by an ongoing strong demand environment and presence in diversified segments are expected to continue to bolster its performance.
“Consistent focus on execution, value-added volume-mix, and consistent, assured deliveries to our customers have led to our overall growth. Our proactive engagement across high-growth market segments has reaped benefits even as uncertainties of inflation and a tight supply chain persist,” Sanjeev Sharma, Managing Director, ABB India, said.
“In an ongoing high demand environment and easing of the commodity price cycles, ABB India’s well-balanced portfolio for diverse customers across market segments will continue to act as a catalyst of growth. We are well positioned to work with customers and partners for the digitalization and decarbonization of Indian industries while operating our campuses with best-in-class sustainable practices. After a successful start to the first half, we expect to continue leveraging our local and global strengths for growth in the second half of 2022,” he added.
While the firm is focused on growing market segments to deepen its relationship with its customers, it remains cognizant of geopolitical uncertainties, rising Covid cases, currency fluctuations and other macroeconomic indicators, including commodity and fuel prices. A combination of a strong order backlog supported by an ongoing strong demand environment and presence in diversified segments is expected to continue bolstering its performance, the company said.
ABB India is uniquely positioned to harness global technology trends, digitalization, and with its focus on decarbonization to provide greater business opportunities for innovation and collaborative solutions for the customers, a company regulatory filing said.
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Total expenses during the quarter increased by 31% YoY to INR 3627 crore, due to higher raw material costs (up 36% YoY), and higher cost of stock-in-trade purchases, (up 39% YoY), and higher other expenses (up 73% YoY).
“We continue to see a sustained uptick in demand for BKT tires. However, in Q2, we expect sluggish demand given macro challenges in Europe coupled with heat waves and inflationary trends in the USA,” Balkrishna Industries said. However, the management retained its sales volume guidance of 3.2-3.3 lakh tonnes for FY23.
The company witnessed growth in its businesses, especially the Alloy Wheel division. The EBITDA for Q1 FY23 was at INR 266 crores with a growth of 81% from INR 147 crores in Q1 FY22, the company said.
