Engineering firm ABB India beats Q2 profit view on electrification demand

ABB India

08/08/2024 12:52

BENGALURU, Aug 8 (Reuters) - Engineering services firm
ABB India  ABB.NS  reported a better-than-expected
second-quarter profit on Thursday, driven by higher demand for
its electrification products.
    Profit at the Indian arm of Switzerland's ABB  ABBN.S  rose
50% year-over-year to 4.43 billion rupees ($52.78 million) in
the three months ended June 30. Analysts, on average, expected
4.07 billion rupees in profit, according to LSEG data.
    Capital goods companies benefitted from healthy industrial
demand and strong execution of backlog orders, even as new
orders slowed due to the general elections that lasted from
April to June, analysts said.
    The company continues to have a strong order backlog
"distributed across segments, providing good revenue visibility,
and is well aligned to support growth plans in the coming
quarters," ABB India said in an exchange filing.
    The company's order backlog at the end of the quarter rose
23% to 95.17 billion rupees.
    Revenue from its electrification segment, which contributes
about 40% to the total and makes solar inverters and wiring
accessories, rose 11.5%.
    Revenue from its second-biggest segment, motion, which makes
electrical motors and generators, grew 17.3%.
    ABB India's total revenue from operations rose 12.9% to
28.31 billion rupees.
    Rival Thermax  THMX.NS  and KEI Industries  KEIN.NS  had
also reported higher quarterly profits last week.
    Parent ABB had posted a slightly better-than-expected
quarterly profit last month.
    Shares of ABB India closed 0.9% higher ahead of the results.

($1 = 83.9310 Indian rupees)

 (Reporting by Aleef Jahan in Bengaluru; Editing by Eileen
Soreng)
 ((aleefjahan.cs@thomsonreuters.com;))