2017-02-09 - New Delhi, February 9, 2017: ABB India Limited, reported results for the quarter and the full year ended December 31, 2016.
- Technology leadership drives orders to cross INR 12,000 crore mark for the first time
- Operational excellence results in consistent profitability improvement
- Board recommends dividend of Rs.4 per share
Key figures (INR crore)
* The Company evaluates the profitability of its segments based on Operational EBITA. In the fourth quarter of 2016, the Company modified the definition of its primary measure of segment performance to also exclude non-operational pension cost and changes in estimates relating to opening balance sheets of acquired businesses (changes in pre-acquisition estimates). After these revisions, Operational EBITA represents income from operations excluding: (i) amortization expense on intangibles arising upon acquisitions (acquisition-related amortization), (ii) restructuring and restructuring-related expenses, (iii) non-operational pension cost, (iv) changes in pre-acquisition estimates, (v) gains and losses from sale of businesses, acquisition-related expenses and certain non-operational items, as well as (vi) foreign exchange/commodity timing differences in income from operations consisting of: (a) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (b) realized gains and losses on derivatives where the underlying hedged transaction has not yet been realized, and (c) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
| ||Q4 2016||Q4 2015||2016||2015|
|Profit before tax||224||209||576||475|
|Profit before tax %||9.0||8.6||6.7||5.8|
|Profit after tax||147||129||376||300|
|Profit after tax %||5.9||5.3||4.3||3.7|
|Operational EBITA* ||281||241||683||588|
|Operational EBITA % ||11.3||9.9||7.9||7.2|
ABB India posted biggest growth in orders in recent years. The investments in power transmission based on cutting edge technology, renewables, increased spend in infrastructure & transportation provided ABB India ample opportunities. The new orders in UHVDC (ultra high voltage direct current) transmission technology projects pioneered by ABB, which reduces losses to transmit clean energy over long distances would be key to realizing the government’s renewable energy vision and 24x7 reliable power for all. Transportation investments led by railways, Metro projects and renewables by wind provided the levers for a milestone growth. A sectoral focus in emerging areas like food and beverage and datacenters continue to show good progress. The full year order book surged to Rs 12,466 crore while orders received for the quarter ending December 2016 was at a high of Rs 5,628 crore.
An order backlog of Rs 11,821 crore, as on December 31, 2016, provides solid visibility for future revenue.
Revenues and operations
ABB India posted a revenue of Rs 2,492 crore for the quarter and Rs 8,648 crore for the full year. In line with the government’s make in India initiative, ABB India has been consistently investing to deepen footprint in the country, innovating and deploying global technology for domestic and international markets. The robust order backlog complements ABB India’s proven execution ability to provide a strong foundation for profitable growth in the future.
Operational Excellence initiatives continued to be one of main contributors to the market penetration, innovation and expansion endeavors. Indigenization of new technology industrial solutions included smoke venting motors and higher efficiency motors in the IE3 range. The push for sustainable infrastructure and urbanization across the country has resulted in the development of products like electromagnetic flowmeter with flangeless design for promising water segment and the launch of XT range of MCCBs.
Value added offerings, continued focus on cash and cost, with a portfolio best positioned to leverage the green-shoots of energy and the fourth industrial revolution, has resulted in a consistent profit uptrend Q-on-Q and yearly basis for the last five years. Continuous improvement in profitability, coupled with execution excellence initiatives and efforts to improve net working capital have resulted in a significant gain in cash at the close of the year.
Profit before tax (PBT) increased to Rs 224 crore for the quarter and Rs 576 crore for the year. In a market of select growth and tightening investments ABB India’s differentiated position was reflected in profit after tax improving to Rs 147 crore for the quarter and Rs 376 crore for the year ended December 31, 2016.
“Our performance is built on deeper customer engagement, more value added offerings and the organization agility to adapt to changing global and local market demand cycles. Our focus on operational excellence with consistent work on cost and cash has ended the year with solid results,” said Sanjeev Sharma, CEO and Managing Director, ABB India. “Our cutting edge technology portfolio of products and services align well with investments and trends in the market. We feel very excited that ABB Ability Digitalization solutions will be a frontrunner in shaping future of utilities, industries, transportation and infrastructure sectors in the country.”
The Board of Directors has recommended a dividend of Rs.4 per share (200 percent), subject to the approval of shareholders at the forthcoming Annual General Meeting.
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 more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 132,000 employees.
For more information please contact:
Corporate Communications, ABB India Ltd.
|Name: Sohini Mookherjea |
Tel: + 91 9632726608
Fax: + 91 80 22949148
|Name: Peter Stierli |
Tel: + 91 9901722298
Fax: + 91 80 22949148