ABB India witnesses rebound in Q1 of 2021

ABB India Limited recently released the results for Q1 calendar year(CY) 2021. The company highlighted that they witnessed a strong rebound in orders in the automation and robotics portfolio. Total orders at Rs 1,825 crore for the quarter reflect the company’s improvement on a sequential basis, representing growth of 24% over Q4 2020, while being lower by 7% Y-o-Y owing to a large order previous year. Robotics secured significant wins during the quarter, which is seen as a driving force to strengthen the installed base and leverage expanded operational capacity. Investment decisions by the customers belonging to core sectors—metals and mining—which were earlier held back as a result of the market uncertainty and enhancement of channel business in process industries, led to order growth in process automation. The quarter was also marked by orders in segments like pharmaceutical, e-mobility, renewables, etc. Key orders include: Distributed control and safety system projects for one of the largest agrochemical companies Robotic automation solution for building electric scooters for OLA ABB doubly fed induction generator for the wind sector for a renewable energy major Distributed control and manufacturing execution system for a pharma major Electrification solutions for an engineering company The company reported Rs 1,629 crore revenue for the quarter based on the successful backlog conversion. Service revenues, which were earlier impacted due to logistic challenges are slowly witnessing an upturn. The company reported a Profit Before Tax of Rs 204 crore mainly driven by operational improvement initiatives, capacity utilisation and reduced expenses, as mentioned by the company. It also included a one-time gain of Rs 75 crore due to disposal of an asset as a part of footprint rationalisation initiative. The company reported Profit after tax of Rs 151 crore at the end of Q1 2021 as compared to Rs 66 crore in Q1 2020. Sanjeev Sharma, Managing Director, ABB India, said, “Overall, ABB India has recorded a significant sequential order increase with improvements across all our divisions.” ABB is a global technology company that connects software to its electrification, robotics, automation and motion portfolio. Image Source