ABB India delivers another quarter of solid performance with consistent execution

ABB India delivers another quarter of solid performance with consistent execution

ABB India Limited posts Q2 CY2022 results

Q2 and H1 2022 HIGHLIGHTS

  • Orders up 64% for the quarter and 44% for H1 Y-o-Y
  • Revenue up 44% for the quarter and 32% for H1 Y-o-Y
  • PAT up by 115% for the quarter and 136% for H1 Y-o-Y

Commenting on the company’s performance, Sanjeev Sharma, Managing Director, ABB India said, “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 have reaped benefits even as uncertainties of inflation and a tight supply chain persist. In an ongoing high demand environment, while the commodity cycles look at some easing, 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.”

KEY FIGURES INR Crores (for continuing business)


Q2 2022

Q2 2021

Q1 2022

H1 2022

H1 2021

CY 2021

Orders

2,767

1,689

2,291

5,066

3,514

7,666

Order backlog

5,995

4,583

5,229

5,995

4,583

4,912

Revenues

2,053

1,425

1,968

4,021

3,054

6,934

PBT before exceptional / one off and tax

196

90

198

394

219

603

PBT before exceptional / one off and tax %

9.5

6.3

10.1

9.8

7.2

8.7

Profit before tax

196

90

491

687

294

724

Profit before tax %

9.5

6.3

25.0

17.1

9.6

10.4

Profit After Tax

147

68

370

517

219

532

Profit after tax %

7.2

4.8

18.8

12.9

7.2

7.7

Operational EBITA*

227

88

165

392

200

575

Operational EBITA%

11.1

6.2

8.4

9.7

6.5

8.3

Orders 

Total orders for the quarter were at INR 2,767 crore and INR 5,066 crore for H1. 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.

Key orders include:

  • Automation package for Cold rolling mills for continuous galvanizing line from one of the global majors in Process Industries
  • Power handling systems order from paint industry for Process Automation Energy Industries division
  • Traction converter orders from locomotive companies
  • Double fed induction generators for a global wind energy major
  • Compact substation orders for the cities of Ahmedabad and Surat for Electrification business
  • Low voltage components for a wide range of industries from railways rolling stock to chip making companies
  • Smart building and smart power equipment including low voltage breakers for solar, wind, and solar cell projects
  • Continuous emission monitoring systems contract for one of the projects of Varanasi Municipality
  • Robotic palletizing for a paints major, robotic handling in mining and construction industry, robotic lean palletizer by an FMCG major

ABB India continues to have a strong order backlog as of June 30, 2022, at INR 5,995 crore, and increase of 31 percent Y-o-Y, which provides revenue visibility and is well aligned to support growth plans in the coming quarters.

Revenue and operations

The company reported INR 2,053 crore revenue for the quarter and INR 4,021 crore for H1 2022. Also in revenues, 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 Motion’s 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 AI 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.

Profit and cash flow from operating activities
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 H1 2022. 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.

Profit after tax reported at INR 147 crores for the quarter (Y-o-Y) and INR 517 crore for H1 2022 (Y-o-Y).

The company’s cash position continues to remain robust at INR 2,787 crore at the end of Q2 and H1 2022.

Update on turbocharger business

The Board of Directors of the Company at its meeting held on August 9, 2022, approved the sale of investment in equity shares of wholly owned subsidiary Turbocharging Industries and Services India Private Limited to Turbo Systems Switzerland Limited for a consideration of INR 355 Crores. This transaction is expected to be completed by September 30, 2022 upon execution of necessary agreements.

Sustainability in practice

Aligned with ABB Group Sustainability targets 2030, ABB India progressed well on its ESG and sustainability agenda. On the external front, as part of the global ABB initiative, the energy efficiency movement also launched in India, as the businesses have been working extensively with partners and customers to enlist, incentivize and pledge their support to this program. Our own operations in India are now powered by renewable electricity across manufacturing locations, complying with various state regulations. Most of our campuses are well on their way of being certified single-use plastic free and obtaining the water positive and green building certification.

Outlook

While we are focused on growing market segments to deepen our relationship with our customers, we remain cognizant of geopolitical uncertainties, rising covid cases, currency fluctuations and other macroeconomic indicators, including commodity and fuel prices. A combination of strong order backlog supported by an ongoing strong demand environment and presence in diversified segments is expected to continue bolstering the Company’s performance. ABB India is uniquely positioned to harness global technology trends, digitalization, and its focus on decarbonisation to provide greater business opportunities towards innovation and collaborative solutions for our customers.

The results are basis standalone numbers, for consolidated numbers including Turbochargers, please refer to SEBI publication.

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com

Links

Contact us

Downloads

Share this article

Facebook LinkedIn Twitter WhatsApp