The Hindu : Business : Big jump in ABB’s second quarter net profit

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Friday, Jul 27, 2007
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Big jump in ABB’s second quarter net profit

To invest Rs. 250 crore on expansion

Setting up unit in Bangalore
Eyeing new revenue streams

BANGALORE: Power and automation technologies provider ABB India on Thursday reported a 51 per cent jump in net profit for the second quarter ended June 30, 2007, at Rs. 108.60 crore against Rs. 71.90 crore on good order intake.

Revenues for the quarter grew 43 per cent to Rs. 1,415.62 crore against Rs. 989.51 crore. The period saw an order intake of Rs. 1,996.30 crore, up 38 per cent over the same period last fiscal, ABB India Chairman, Ravi Uppal, told reporters here.

The net profit for the first half was up 59 per cent at Rs. 195.20 crore and revenues 52 per cent at Rs. 2,743.20 crore.

“India’s macro and industrial growth continues to provide a positive business climate. We have seen some acceleration in terms of power capacity addition as well as urban and rural transmission and distribution,” Mr. Uppal said.

ABB India, which has a market cap of $6 billion, was now investing Rs. 250 crore on expanding capacities. It was setting up a unit in Bangalore to manufacture a wide range of automation products, he said.

The company, which is the seventh largest contributor to the group’s business volumes, was eyeing new revenue streams in areas such as SEZs, port and harbour systems and the Railways, he said.

ABB’s Bangalore research centre, which employs 450 engineers, is the group’s largest worldwide in terms of people. “A lot of product development work is being moved to Bangalore,” he said. — PTI

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