Power Update

Double digit growth in ABB’s orders and increase in profit

ABB India Ltd’s orders grew 13 per cent in the second quarter and 20 per cent in first half of current fiscal reflecting its organic growth strategy. “Large orders remained muted as decisions on government initiatives and private investments were stalled in anticipation of upcoming tax restructure,” the company said. Base orders were the key contributor with industry turning to improving operational efficiencies through technology and digital upgrades including robotics automation. ABB strengthened its own digital asset health management offering to support the transformation of the Indian industry – with the launch of its remote drives service center. Focus on 24×7 reliable ‘Power to All’ resulted in continued focus on state utility infrastructure including a wider reach to remote locations while balancing burgeoning renewable input. Strategically leveraging the extensive installed base sustained strong growth in service orders. Export orders continued the uptrend in the year with a focus on power networks and industrial efficiency.

Orders received for the second quarter were ` 2,301 crore. The highest ever order backlog of ` 12,094 crore, as of June 30, provides solid visibility for future revenue.

ABB India’s revenue in the second quarter expanded to ` 2,224 crore. This was a quarter where the lag effect of demonetisation and troughing corporate lending met with the anticipation of Goods and Services Tax (GST). Continued close collaboration led to deeper insights of customer operations in a dynamic environment. This ensured revenue growth. Lean management, relentless pursuit of cash over revenue, and similar initiatives as part of operational excellence yielded savings and superior cash position.

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