Engineering firm ABB India posts 88% rise in Q1 profit on robust demand
BENGALURU, May 10 (Reuters) -Engineering services firm ABB India ABB.NS on Friday reported an about 88% jump in its first-quarter profit, surpassing analysts' expectations, backed by higher demand at its biggest segment.
Profit at the domestic arm of Switzerland's ABB ABBN.S rose to 4.59 billion Indian rupees ($54.97 million) in the three months ended March 31, from 2.45 billion rupees a year earlier.
Analysts on an average expected profit of 3.29 billion rupees, according to LSEG data.
Indian capital goods companies are expected to see healthy revenue growth in the March quarter, led by industrial demand and strong order book, according to analysts.
ABB India said its total orders surged to 36.07 billion rupees — the highest for the first quarter in the last five years.
"The increased demand for technologically superior solutions, coupled with the government's capital expenditure focus on new-age themes such as energy efficiency, decarbonization and digitalization has significantly driven our order momentum," ABB India said.
Revenue from the company's electrification segment, its largest with a contribution of 41.2% to overall revenue, rose nearly 30%. Its second-biggest segment, motion, grew 4.2%.
ABB India's total revenue from operations rose about 28% to 30.80 billion rupees, while analysts expected 28.62 billion rupees.
Shares of ABB India closed 2.8% higher ahead of the results. The stock has climbed 36.1% in the January-March quarter.
Shares of parent ABB scaled a record high last month, after the company posted better-than-expected quarterly profit and signalled faster growth in the coming months.
Rival Thermax THMX.NS also reported higher fourth-quarter profit on Friday, while Siemens SIEM.NS is expected to post its results on Tuesday.
($1 = 83.5006 Indian rupees)
Reporting by Rama Venkat and Yagnoseni Das in Bengaluru; Editing by Shilpi Majumdar
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