Engineering firm ABB India posts bigger Q3 profit on electrification demand
Nov 4 (Reuters) -Engineering services firm ABB India ABB.NS reported a 21% surge in third-quarter profit on Monday, driven by higher demand for its electrification products.
Profit at the Indian arm of Switzerland's ABB ABBN.S rose to 4.4 billion rupees ($52.33 million) in the three months ended Sept. 30 from 3.63 billion rupees a year earlier.
Capital goods companies benefited from increased orders and easing raw material costs during the quarter, analysts said.
"The quarter was marked by record levels of backlog complemented by a strong book to bill and cash," ABB India said in an exchange filing.
The company's total orders for the third quarter rose 11% from a year earlier to 33.42 billion rupees.
Revenue from its electrification segment, which makes solar inverters and wiring accessories, rose 10% compared with a year earlier. The segment contributes about 40% to the total revenue.
The company's second-biggest segment, motion, which makes electrical motors and generators, also logged a revenue growth of 10%.
ABB India's total revenue from operations rose 5% from a year earlier to 29.12 billion rupees.
Rival Thermax is due to post results next week.
Earlier this month, parent ABB posted a slightly better-than-expected quarterly operational core profit.
Shares of ABB India closed 0.94% lower ahead of the results.
($1 = 84.0810 Indian rupees)
Reporting by Aleef Jahan in Bengaluru; Editing by Sumana Nandy and Krishna Chandra Eluri
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