Mumbai, February 8, 2018: ABB India Limited reported results for the fourth quarter and full year ended December 31, 2017
- Base orders continued to drive growth , increasing 19 percent in Q4 and 13 percent in 2017
- Double digit revenue growth achieved in Q4 and for full year revenue improved 5 percent
- Profit after tax increased 12 percent to 420 INR crores for the full year
- Conversion of business opportunities in digitalization and emerging sectors
- Board approves dividend recommendation of Rs 4.4 per share
- Jean Christophe Deslarzes appointed the new chairman of the board of directors for ABB India
"We have delivered balanced performance in 2017, and built a solid foundation for future growth and profitability as our nation's and global markets improve. The year was marked by our success in landmark nation-building projects across the country from Kashmir to Kerala,” said Sanjeev Sharma, Managing Director, ABB India. “In addition, our collaboration with customers for charting their digitalization and higher productivity roadmaps resulted in significant engagement and business traction. ABB India will continue to deliver next level solutions and enabling technologies for nation building through our partners and customers for the energy and the fourth industrial revolution.”
Total orders grew in the fourth quarter by 44 percent and in 2017 by 19 percent, excluding the exceptionally large UHVDC order and the large traction transformer orders booked in 2016. Orders in the second half of the year benefited from reviving industrial activity; however, base orders developed well throughout 2017, and short cycle activity was strong. Export orders reached an all-time high in the year, significantly more than doubling in 2017. Major orders were secured from both domestic and international customers, comprising propulsion equipment for railways in India, and substations for electric transport from south east Asian countries. The efforts in getting customers digital-ready yielded results in 2017 with smart factory pilots, including remote monitoring solutions, established across several sectors including cement, paint, pharma, oil and gas and two-wheeler manufacturers. Orders received for the fourth quarter were INR 2911 crore.
The order backlog of INR 11,534 crore, as of December 31, 2017, notwithstanding the absence of the exceptionally large UHVDC order, provides solid visibility for future revenue.
Revenue and operations
ABB India’s revenue for 2017 was INR 9087 crore. All divisions contributed, aided by stabilization and selective improvement in end-customer markets including ports, process industries, mining, refining and emerging markets such as food and beverage, smart cities and metros. The company closed the year with a solid cash performance across all four divisions, reinforcing the mantra of cash over revenue for a balanced growth. Profit Profit before tax (PBT) increased by 8 percent to INR 622 crore and profit after tax (PAT) by 12 percent to INR 420 crore compared to the prior year period.
The Board of Directors has recommended a dividend of Rs 4.4 per share (220 percent), subject to the approval of shareholders at the forthcoming Annual General Meeting. Chairman of the board of ABB India Jean Christophe Deslarzes, Head of Human Resource, and member of Executive Committee, ABB Group has been appointed as the new chairman of the board of directors for ABB India. He succeeds Frank Duggan, who has taken over a new role as the President of the Europe region, ABB Group.
ABB is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing a history of innovation spanning more than 130 years, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. As title partner of Formula E, the fully electric international FIA motorsport class, ABB is pushing the boundaries of e-mobility to contribute to a sustainable future. ABB operates in more than 100 countries with about 135,000 employees. www.abb.com/in