Bangalore, July 30, 2010: ABB Limited India’s orders were impacted in the second quarter of 2010 as a result of delay in conclusion of a few large orders. Base orders continue to remain stable, resulting in a stronger order backlog.
Key figures
Figures. in million Rs. unless stated otherwise
 | Q2, 2010 | Q2, 2009 | H1, 2010 | H1, 2009 |
| Orders | 12,346 | 21,116 | 29,233 | 44,149 |
| Order backlog (at end of period) | | | 85,317 | 76,233 |
| Revenue | 14,466 | 15,050 | 29,024 | 28,981 |
| Profit before tax (excluding exchange rate variation) | 782 | 1491 | 1,689 | 2,933 |
| Profit before tax | 555 | 1,284 | 639 | 2,487 |
| Profit after tax | 383 | 836 | 450 | 1,619 |
Orders
The company received orders worth 12,346 MINR during the quarter ended June 30, 2010, compared with a high order intake of 21,116 MINR for the same period last year. Orders were impacted due to delays in conclusion of a number of large projects compared to the same period last year and continued price pressure in the market. With the revival of industrial activities, the Process Automation and Discrete Automation and Motion businesses continue to have growth in base orders. Focus remains on base orders, while preparing for opportunities coming up in large power transmission and distribution and other infrastructure projects expected in the later part of the year.
Order backlog
The company’s order backlog increased to 85,317 MINR as of the end of June 2010. The strong order backlog situation provides significant visibility for the coming quarters.
Revenue and operations
The revenue for the second quarter ended June 2010 was 14,466 MINR. Since the major portion of the backlog constitutes large projects with long gestation periods, revenues declined nominally. With increased focus on working capital management, the company continued to improve its operating cash flows significantly as compared to same period last year and also continues to remain debt free.
Net profit
The results of the company were adversely impacted in the second quarter ended June 2010 on account of continued costs on exit from rural electrification business and increasing price pressure in the market due to which the company posted a net PBT of 782 MINR as against 1,491 MINR in the same period last year (excluding exchange rate variation ).
“ The market continues to be a challenge, especially on the utility side. The results of our cost savings program together with focus on retention of people and training for project managers and investments in manufacturing localization with a strong emphasis on operational excellence will ensure that we are well positioned with the changing competitive landscape in India.,” said Biplab Majumder, Vice Chairman and Managing Director, ABB Ltd., India.
ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people.