According to reports, power and automation technology firm ABB India Ltd today reported 22 per cent decline in its net profit at Rs 40.34 crore for the second quarter ended June 30, 2013, with lower orders due to challenging business environment.
The company had posted a net profit of Rs 51.63 crore in the corresponding quarter of the previous year.
“The company received orders worth Rs 1,731 crore during the quarter ended June 30, 2013, compared to an order intake of Rs. 2,045 crore for the same period last year. This reflects a challenging business environment as customers continue to exercise caution on large investments,” ABB India Ltd in a release said.
The company continues to focus on balancing its risk and returns, it added.
However, thrust on exports and new business streams yielded results with export orders demonstrating clear growth over successive quarters. Orders from sectors such as renewable energy continued on their growth trajectory, the Bangalore based company said.
ABB India’s order backlog stood at Rs. 8,235 crore at the end of the quarter as compared to Rs.9,175 crores during the same period last year.
Stating that the economic environment is now increasingly depressed, Bazmi Husain, Managing Director, ABB India Limited, said “our multiple productivity and operational excellence initiatives are yielding results.”
“We are confident that our broad portfolio, cost takeout programs, localisation initiatives and the ability to find new opportunities will give us pole position as the market eventually revives,” he added.
The company’s total income plummeted over 8 per cent at Rs 1741.64 crore from Rs 1883.79 crore in the same period last fiscal.
Its operating margins however improved to 6.4 percent. “Savings from operational excellence initiatives and cost take out programs helped offset the impact of price pressures and the higher cost of working capital,” ABB said.
The finance cost of the company during the April-June quarter in 2012 stood at Rs 7.86 crore. However, the company registered finance costs to the tune of Rs 26.80 crore during April-June period this year.