ABB India clocks PBT of Rs 113 crore in Q3 FY20 after reform measures

Bengaluru (Karnataka) [India], Nov 13 (ANI): Power and automation technology major ABB India on Wednesday reported a profit before tax of Rs 113 crore and profit after tax of Rs 79 crore during the July to September quarter of current fiscal year (Q3 FY20).
The company follows a January to December fiscal year. Operational earnings before interest, tax, depreciation and amortisation (EBITA) stood at Rs 119 crore.
"Strong backlog, higher capacity utilisation, revenue mix, support from services in the larger businesses helped sustained the momentum," the company said in a statement adding that it also benefitted from the recently announced tax cut from the government.
The third quarter revenue was Rs 1,746 crore. A steady and stable order book conversion, leveraging pockets of growth across business segments and specific applications contributed to the same.
ABB India signed a memorandum of understanding with a leading private distribution company in the national capital to improve the power distribution network, focusing on safety, reliability and flexibility for future needs and to pilot ABB's smart substation control and protection devices.
Total orders were at Rs 1,606 crore, up 5 per cent during the quarter and year-to-date orders were at Rs 5,374 crore. Service orders were up 16 per cent year-on-year led by process improvement and production optimisation initiatives when private capacity expansion continues to lag.
While electrification and motion businesses continued the solid growth pattern, robotics and discrete automation and industrial automation are facing challenges in navigating sectoral headwinds, the company said.
Q3 was also marked by orders for smart cities in Ranchi and the ancient city of Ujjain for smart power distribution equipment like compact substations and ring main units. A steel major also placed a significant order on electrification ArTuK panels.
ABB India continues to show resilience in a mixed domestic market and a global one marked by geopolitical uncertainties. With a flexible, technologically sound, and agile portfolio, the company continues to leverage pockets of stabilisation and reap benefits from the recently announced government reforms.
"The recent reforms are likely to provide the tailwind for stable growth opportunities in the short to medium term. However, the remaining months of 2019 will be key to managing the structural and cyclical headwinds," it said.
(ANI)