ABB Ltd., provider of electricity and automation technologies, reported a significant fall in its net profit for the fourth-quarter, hurt by cost overrun, delays in receipt of payments, inflexible terms and conditions in infrastructure projects, forex volatility and low price realization.
The Bangalore-based company reported a fourth-quarter stand-alone net profit of Rs.16.77 crore or Re.0.79 per share, compared with Rs.64.12 crore or Rs.3.03 per share in the fourth-quarter of 2012, registering a 74 percent decline.
For the quarter, its net income fell by five percent to Rs.2,052.76 crore from the Rs.2,169.64 crore in the year-ago quarter, while other operating income amounted to Rs.29.52 crore, compared with Rs.30.23 crore in the preceding year quarter.
For the quarter, income from "Power Systems" was Rs.598.99 crore, lower by 18 percent from the Rs.731.41 crore in the corresponding quarter last year, while that of "Power Products" declined by two percent to Rs.584.43 crore from the Rs.595.19 crore in Q4FY11.
Income for the quarter from "Process Automation" segment stood at Rs.409.79 crore, down by four percent from the Rs.425.52 crore for the comparable period last year, whereas income from "Discrete Automation and Motion" segment dropped by six percent to Rs.493.39 crore from the Rs.527.14 crore in Q4FY11.
income from "Low Voltage Products" segment was Rs.168.26 crore, compared with Rs.144.94 crore in the year-ago quarter, an increase of 16 percent.
The fourth-quarter saw a strong order intake of Rs.1,579 crore, down by 29 percent from the Rs.2,209 crore in the previous year quarter.
For the twelve-month period, ABB's stand-alone net profit was Rs.137.41 crore, down by 26 percent from the Rs.184.54 crore for the comparable period last year. Total income, including other operating income, touched Rs.7,564.99 crore, compared with Rs.7,448.97 crore in the corresponding period a year-ago, an increase of two percent.
Consolidated Results
On a consolidated basis, its net profit for the fiscal year stood at Rs.140.94 crore, compared with Rs.184.71 crore in 2011, reflecting a 24 percent decline. Total income, including other operating income, totaled Rs.7,610.48 crore, higher by two percent than the Rs.7,451.79 crore a year-ago.
The company's order backlog stood at Rs.6,966 crore as at the end of December 2012, compared with Rs.8,189 crore as at the end of December 31, 2011.
The company's Board recommended a dividend of 150 percent or Rs.3.00 per equity share of Rs.2 each for the fiscal year 2012.
Country Manager & Managing Director Bazmi Husain, said "While short term economic uncertainties cannot be ruled out, the company is cautiously optimistic about the long term potential of the Indian market. We look forward to government's reform initiatives to accelerate and revise the capital goods sector. We continue to take several initiatives to introduce new technology and products that help Indian utility and industry customers remain competitive. We are also intensifying our efforts to boost productivity, strengthen project management and optimize resource utilization for sustained profitable growth."
ABB shares at the BSE are currently trading at Rs.592.40, down Rs.18.50 or 3.03 percent on a volume of around 75,763 shares.
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