BENGALURU (Reuters) – ABB India reported a more than two-fold rise in quarterly profit on Friday, aided by higher order wins in the electrification and process automation businesses.
The Indian arm of Swedish-Swiss ABB Ltd, reported a profit of 2.96 billion rupees ($35.74 million) for the second quarter, compared with 1.40 billion rupees a year earlier.
The company posted a 10% increase in total orders to 30.44 billion rupees.
However, parent ABB Ltd earlier reported a 9% drop in new orders from its second-biggest market China for the quarter through June 30.
The maker of factory robots and automation systems said it was seeing some customers shifting investments to India and other Asian countries from China due to geopolitical tensions. This has led India to become ABB’s fifth-biggest market.
ABB India’s total second-quarter revenue from operations rose more than 22% to 25.09 billion rupees.
Revenue from the electrification business, which accounts for over 40% of ABB India’s sales, rose 20%, while that from process automation increased 38% when compared with a year-ago quarter.
The company also declared a special dividend of 5.50 rupees per share.
Rival KEC International posted a bigger-than-expected rise in first-quarter profit on strong infrastructure demand, while Thermax missed estimates with a 1.7% increase in earnings.
ABB India’s shares closed nearly 1% higher ahead of the results. The stock rose 31.4% in the April-June quarter.
($1 = 82.8110 Indian rupees)
(This story has been corrected to remove an incorrect company descriptor in paragraph 3, and rectify the sales percentage to ‘over 40%’ from ‘nearly 40%’, in paragraph 7)
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Shweta Agarwal)