Engineering firm ABB India posts bigger Q3 profit on electrification demand

ABB India

04/11/2024 13:37

Nov 4 (Reuters) - Engineering services firm ABB India
 ABB.NS  reported a 21% surge in third-quarter profit on Monday,
driven by higher demand for its electrification products.
    Profit at the Indian arm of Switzerland's ABB  ABBN.S  rose
to 4.4 billion rupees ($52.33 million) in the three months ended
Sept. 30 from 3.63 billion rupees a year earlier. 
    Capital goods companies benefited from increased orders and
easing raw material costs during the quarter, analysts said.
    "The quarter was marked by record levels of backlog
complemented by a strong book to bill and cash," ABB India said
in an exchange filing.
    The company's total orders for the third quarter rose 11%
from a year earlier to 33.42 billion rupees.
    Revenue from its electrification segment, which makes solar
inverters and wiring accessories, rose 10% compared with a year
earlier. The segment contributes about 40% to the total revenue.
    The company's second-biggest segment, motion, which makes
electrical motors and generators, also logged a revenue growth
of 10%.
    ABB India's total revenue from operations rose 5% from a
year earlier to 29.12 billion rupees.
    Rival Thermax is due to post results next week.
    Earlier this month, parent ABB posted a slightly
better-than-expected quarterly operational core profit.
    Shares of ABB India closed 0.94% lower ahead of the results.


($1 = 84.0810 Indian rupees)

 (Reporting by Aleef Jahan in Bengaluru; Editing by Sumana Nandy
and Krishna Chandra Eluri)
 ((aleefjahan.cs@thomsonreuters.com))