The company strong revenues for the quarter as a result of strong backlog execution and solid customer-connect and service business supported a recovery in June 2021, which to a large extent compensated for the muted offtake in first months of the quarter. All divisions witnessed a growth during the period under review. However, on a sequential basis, there was a decline of 12.5% primarily due to interruptions caused by the second wave of pandemic.

Profit after tax recorded a robust growth on the back of better preparedness and localized impact of the second wave. Profit margin improved to 4.8% in Q2 2021 as compared to 1.7% in Q2 2020. Operational EBITA stood at Rs 88 crore in Q2 FY22 from Rs (21) crore in Q2 FY21. Operational EBITA margin was at 6.2% in Q2 FY22 as against (2.1)% in Q2 FY21.

Standalone profit before tax surged 300.6% to Rs 91.90 crore in Q2 June 2021 as against Rs 22.94 crore in Q2 June 2020. The Q2 earnings was declared post market hours yesterday, 28 July 2021.

The company reported a profit before tax (before exceptional items and one-offs) registered solid figures, mainly driven by better capacity utilization, revenue mix, operational efficiency, and cost optimization. While the profitability improvement was witnessed across all business segments, external headwinds like increasing commodity prices, supply disruptions in electronic components and currency volatility were building up. The company's cash position continues to remain robust at Rs 2,364 crore at the end of Q2 2021 vis-a- vis Rs 1,498 crore in Q2 2020.

Total orders for the quarter were at Rs 1,689 crore as compared to Rs 1,200 crore in Q2 2020, recording a growth of 41%. The month of June 2021 witnessed a gradual bounce back in orders by most businesses despite various state level lockdowns in the first two months of the quarter. There was a marginal dip in orders sequentially with businesses impacted by localized impact of the second wave.

Commenting on the Q2 outcome, Sanjeev Sharma, the managing director (MD) of ABB India, has said that: I am proud of ABB business model resilience and our business divisions' teams, as we have posted a strong recovery, while leveraging growth market segments with a good bounce back once the pandemic wave started to wane in June. The solid demand for ABB products, solutions and services portfolio in many of our targeted market segments ensured our profitability despite the sharp increase in commodity prices during the quarter aided by operational efficiencies. The health and safety of all our stakeholders continues to be our top priority and is an integral part of our business continuity strategy to serve customers.

We have rolled out a voluntary pan-India vaccination drive for all our employees, families, and partners across locations with nearly >80% targeted personnel coverage by end of June. Effective work- related safety protocols and vaccination has been and will continue to be a key enabler for our stake- holder health assurance and business continuity in coming months. We are on track with our 10-point ESG plan and continue to invest in this initiative and are seeing the impact in our targeted communities. We are well prepared to leverage our strength and readiness in H2 CY2021, Mr Sharma added.

In its outlook, ABB India stated that: The market is expected to recover in India with improving macro backdrop, decreasing current case load and global recovery. However, the resurgence of cases in certain large countries, a potential third wave of infections and its impact on domestic and global business traction remain areas of uncertainty. We have a business continuity plan in place with people and operations, and safety protocols with close monitoring and engagement in our key market segments. The cautious lookout for commodity price cycles is being factored in by our business divisions. We will continue to leverage growth pockets and calibrate our businesses to the recovery of growth industries like datacenters, renewables, electronics, F&B, and pharmaceuticals and other large core industries that should re-start long overdue capex cycle. ABB India remains cautiously optimistic on order wins and seamless execution in close engagement with custom- ers while gaining operational efficiencies & innovative sustainable practices.

Meanwhile, ABB India proposed to divest/sell its Dodge business, on 28 July 2021 as a going concern on slump sale basis to RBC Bearings incorporated and/or its affiliates/subsidiaries (RBC), for a value not less than Rs 43 crore and on such terms and conditions as contained in a Business Transfer Agreement (BTA) that is to be executed with RBC.

ABB India is engaged in power and automation business in India. Shares of ABB India gained 0.06% to Rs 1,697.20 on BSE. The stock hovered in the range of Rs 1,671.45 to Rs 1,708 during the day.

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