Engineering firm ABB India beats Q2 profit view on electrification demand
BENGALURU, Aug 8 (Reuters) -Engineering services firm ABB India ABB.NS reported a better-than-expected second-quarter profit on Thursday, driven by higher demand for its electrification products.
Profit at the Indian arm of Switzerland's ABB ABBN.S rose 50% year-over-year to 4.43 billion rupees ($52.78 million) in the three months ended June 30. Analysts, on average, expected 4.07 billionrupees in profit, according to LSEG data.
Capital goods companies benefitted from healthy industrial demand and strong execution of backlog orders, even as new orders slowed due to the general elections that lasted from April to June, analysts said.
The company continues to have a strong order backlog "distributed across segments, providing good revenue visibility, and is well aligned to support growth plans in the coming quarters," ABB India said in an exchange filing.
The company's order backlog at the end of the quarter rose 23% to 95.17 billion rupees.
Revenue from its electrification segment, which contributes about 40%to the total and makes solar inverters and wiring accessories, rose 11.5%.
Revenue from its second-biggest segment, motion, which makes electrical motors and generators, grew 17.3%.
ABB India's total revenue from operations rose 12.9% to 28.31 billion rupees.
Rival Thermax THMX.NS and KEI Industries KEIN.NS had also reported higher quarterly profits last week.
Parent ABB had posted a slightly better-than-expected quarterly profit last month.
Shares of ABB India closed 0.9% higher ahead of the results.
($1 = 83.9310 Indian rupees)
Reporting by Aleef Jahan in Bengaluru; Editing by Eileen Soreng
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