ABB India Limited , a prominent player in the Indian industrial technology sector, has released its financial results for the quarter ended March 31, 2020, revealing a mixed performance amidst challenging market conditions.

Financial Highlights

The company reported a net profit of ₹64.64 crore for the quarter, marking a decrease from ₹91.83 crore in the previous quarter. This decline in profitability was accompanied by a reduction in revenue from operations, which fell to ₹1,522.24 crore from ₹1,953.33 crore in the preceding quarter.

Solar Business Update

In a significant development, ABB India reversed an exceptional cost of ₹56.79 crore related to its solar inverter business. This reversal came after the company signed a Business Transfer Agreement with Marici Solar India Private Limited for a consideration of ₹105.63 crore. This strategic move is expected to streamline ABB India's operations and focus on its core competencies.

COVID-19 Impact

The company's operations were notably impacted by the COVID-19 lockdowns, which were implemented from March 24, 2020. These restrictions significantly affected the company's March volumes, contributing to the overall decline in quarterly performance.

Segment Performance

Breaking down the company's performance:

• Continuing operations generated a profit of ₹66.00 crore
• Discontinued operations recorded a loss of ₹1.36 crore

Earnings Per Share

For the quarter under review, ABB India reported basic earnings per share of ₹3.05.

The results reflect the challenging business environment faced by ABB India, particularly in light of the COVID-19 pandemic. While the company has shown resilience in maintaining profitability, the impact of external factors on its operations is evident. The strategic decision regarding its solar inverter business demonstrates ABB India's adaptability in navigating market challenges.

ABB India Limited , a leading industrial technology firm, has announced a significant business development that bolsters its position in the renewable energy sector. The company has secured an order worth ₹174 crores for the supply of wind turbine components, marking a substantial contract win in the green energy space.

Order Details

According to a disclosure made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements, ABB India has accepted an order from Siemens Gamesa Renewable Power Private Limited, Chennai. The order, valued at ₹173.55 crores, involves the supply of 3.X wind turbine converters and electrical cabinets.

Contract Specifications

Strategic Importance

This order underscores ABB India's capabilities in manufacturing critical components for the wind energy sector. The supply of wind turbine converters and electrical cabinets is crucial for the efficient operation of wind turbines, highlighting ABB's role in supporting the growth of renewable energy infrastructure.

Market Implications

This substantial order is likely to have a positive impact on ABB India's financial performance in the coming years, particularly in 2026 when the deliveries are scheduled. It also reinforces the company's position as a key player in the supply chain for renewable energy equipment.

The contract win comes at a time when India is pushing for greater adoption of renewable energy sources, aligning with global efforts to transition to cleaner power generation. This order may signal growing demand for wind energy components, potentially opening doors for more such opportunities for ABB India in the future.

As the renewable energy sector continues to expand, ABB India's expertise in providing essential components for wind turbines positions the company well to capitalize on the growing market demand for sustainable energy solutions.