Hitachi ABB Power Grids in India PAT Rises 35% to Rs 39.4 Cr in Q1

Hitachi ABB Power Grids in India has reported a growth of 34.9 per cent in its profit after tax (PAT) at Rs 39.4 crore during the first quarter of FY21.

The company’s profit after tax stood at Rs 29.2 crore during the same quarter a year earlier.

However, Rs 1.8 crore has been written off as demerger cost and realization of old receivables previously provided, from the company’s profit after tax for Q1 FY20.

Further, the company’s revenue, too, grew by 26.2 per cent to Rs 1,023.8 crore, during the quarter under review, as compared to Rs 811 crore in Q1 FY20, mainly on account of extensive use of remote management and digital solutions, coupled with a diverse product mix, ensured a resilient topline performance in a challenging market.

Commenting on the financial performance, N Venu, CEO and Managing Director of Hitachi ABB Power Grids in India, said “even as challenging times persist, we are pleased to report a stable topline performance. Key order wins in renewables, railways, datacenters and digitalization complemented traditional projects in domestic and export markets.”

“Investment in areas like transmission, rail, metros and renewables are expected to bring continued opportunities and enable us to strengthen our leading market position. Our primary focus continues to remain on protecting our people – employees, partners and communities, to together navigate this maelstrom of the COVID-19 pandemic,” he added.

The company’s operational EBITA during the January-March quarter of FY21 stood at Rs 75.9 crore, up by 34.1 per cent, against Rs 56.6 crore in Q1 FY20.

As of March 31, 2021, the company said that it’s order backlog stood at Rs 4,777.7 crore, and was debt-free and maintained its ‘AAA/Stable’ rating from CRISIL, while its short-term facilities remained at ‘A1+’.

Meanwhile, the company’s order book stood at Rs 848.9 crore, driven by industries and railways business. It has received multiple orders for its gas-insulated high-voltage switchgear, indicative of imminent urbanization and industrialization.

These orders came from data centers, a solar project in Tamil Nadu, an aluminum smeltering plant in Chhattisgarh and a transmission project in Uttar Pradesh.

The company was also the preferred partner for supplying transformers to the Indian Railways, for hydroelectric power generation in Jammu and Kashmir and for the Bangalore metro rail.