New Delhi, Feb 12 (PTI) Power and automation technology major ABB India has reported nearly 50 per cent decline in December quarter profit to Rs 65 crore mainly due to exceptional impairment cost.
The company follows January-December financial year.
Its net profit in the year-ago period stood at Rs 129 crore, a statement said.
During December quarter 2019, the company in accordance with the accounting standards, recorded an exceptional impairment cost amounting to Rs 69.70 crore towards the remeasurement of solar inverter business’s fixed assets and inventories at realizable values, it said.
Its board has recommended a full year dividend of Rs 4.80 per share (240 per cent for 2019), subject to the approval of shareholders at the forthcoming annual general meeting.
The company's net profit in 2019 is Rs 302 crore compared to Rs 254 crore in 2018.
'We have delivered another year of sustainable growth in 2019, carving out new opportunities while market volatility persists,' said Sanjeev Sharma, Managing Director, ABB India.
He further said 2019 has been a year of transformation for ABB, which has been managed seamlessly while delivering value to stakeholders every quarter.
'Each of our businesses have over the years built a strong foundation to be able to withstand any temporary headwinds whilst delivering operational and financial excellence. Balancing export with domestic focus, enhancing volumes with better pricing management and a keen eye on costs and cash helped drive performance during the year,' he added.
With stimulus driven growth likely to continue, the company is well primed for next level growth opportunities from sectors like transportation, infrastructure – buildings, ports, electronics, water, F&B and logistics with tier 2 and 3 cities leading the way, he said.
During the quarter, ABB India received the NCLT approval and the power grids entity was successfully demerged from ABB India on December 1, 2019.
The new entity ABB Power Products and Systems India Ltd (APPSIL) is now operational as a self-sufficient unit with minimal support from ABB India. Asset separation is in progress.
ABB is a Switzerland-based power and automation company. PTI KKS ANU