Latest News | Hitachi ABB Power Sept Qtr Profit Slumps 93 Pc to Rs 5 Cr

New Delhi, Nov 10 (PTI) Hitachi ABB Power Grids in India on Tuesday reported 93 per cent decline in net profit at Rs 4.76 crore for September quarter 2020 mainly on account of one-time provision due to delay in payments.

Hitachi ABB Power Grids is listed on the Indian stock exchanges as ABB Power Products and Systems India Ltd.

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The net profit of the company was Rs 69.25 crore in the same quarter a year ago, a BSE filing said.

Total income in the quarter was Rs 932.02 crore compared to Rs 1,028.86 crore in the same period a year ago.

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"In light of payment delays in a few cases and our analysis, a one-time provision aggregating to Rs 60.48 crore was made in the quarter. This provision will reduce the potential burden on the business' balance sheet in the medium term, yet impact profit after tax in the quarter, which stood at Rs 4.8 crore," the company said.

On COVID-19 impact, it said the company has evaluated its liquidity position and of recoverability and carrying values of its assets and has concluded that no material adjustments are required at this stage in the financial results.

Its orders in July-September 2020 stood at Rs 890 crore, up 57 per cent quarter-on-quarter.

“Our performance in the third quarter shows our steady progress towards normality and demonstrates that the fundamentals remain intact,” said N Venu, Managing Director, Hitachi ABB Power Grids in India.

"Rigorous business continuity and liquidity improvement measures are paying off. Our resilience in this unusual period has helped us to achieve higher revenue and order growth," he added.

Venu said as the market regains its footing, the company's solid order backlog will ensure continuity in the new norm.

"We are progressing many exciting opportunities spanning the power transmission, rail, metro, e-mobility and renewable integration sectors. This is spurred on by the country's focus on building local manufacturing capability. Through our pioneering solutions, we are proud to be contributing towards sustainable society," he added.

Hitachi ABB Power Grids India operates under the legal entity named ABB Power Products and Systems India which is listed on the stock exchanges, the company stated.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)