- Board recommends dividend at Rs 3 per share
- Strong momentum in localization, new product development and customer focused initiatives
Success in some large and medium power projects coupled with consistent double-digit growth in base orders contributed to the growth in the Company’s order intake during the year. A healthy mix of both short and long cycle orders and multi-pronged initiatives to enhance overall competitiveness partly offset the impact of tough market conditions including challenging price realization, higher material and interest costs. Higher exports to Bangladesh, Middle East and Africa also contributed to the growth.
The company received orders worth Rs. 81,888 million for the full year 2011 compared to Rs. 63,496 million in the previous year, registering a growth of 29 percent.
In addition to the existing strong presence in traditional power and industry segments, the company also focused on the renewables and energy-efficiency space during the year.
The Company is well positioned with a strong order backlog of Rs. 91,288 million as on December 31 2011, providing necessary visibility to future revenues.
Revenue and operations
The Company achieved revenue of Rs. 73,703 million in 2011 against Rs. 62,871 million the previous year, an increase of 17 percent.
During the year the company also developed various products and solutions for the Indian market aimed at improving grid reliability and energy efficiency. The company intensified measures to improve both customer engagement and internal operational efficiencies.
"ABB in India is back on the growth path”, said Bazmi Husain, Managing Director of ABB Ltd.
“Our actions to increase competitiveness in early 2011 have started to deliver and will continue to do so. In addition to our ongoing focus on the traditional core businesses of power and automation, ABB sees significant growth opportunities in new market segments such as solar, energy efficiency, smart grids and cyber security.”
Profit before tax was Rs 2,677 million in 2011 as against previous year of Rs 1,002 million, an increase of 167 percent. Net profit after tax for 2011 rose 192 percent to Rs 1,845 million from Rs 632 million in the previous year.
Rising input costs, tight liquidity situation, forex volatility and low price realization as witnessed in some sectors may continue to put pressure on the margins. The company is continuing to take measures such as lowering its cost base and increasing operational performance and productivity to address any market developments and challenges.
Keeping in view of the stable financial position of the company and confidence in the future business performance, the Board of Directors has recommended a dividend of 150 percent, subject to the approval of shareholders at the forthcoming Annual General Meeting. CY 2010 dividend was paid at 100%.