Profit after tax grew year-on-year (Y-o-Y) on account of a low base of 2020 and efforts at stabilizing the supply chains, improving other efficiencies. Revenues dropped due to supply chain disturbances, caused by containers being stuck at ports and material shortages. However, with steady focus on high-growth segments and execution, the revenues were able to normalized to pre-COVID-19 levels.
Operational EBITDA skid 18.35% to Rs 55.60 crore in Q3 September 2021 as compared to Rs 68.10 crore in Q3 September 2020. Operational EBITDA margin stood at 6.5% during the quarter as compared to 7.2% during Q3 September 2020. Profit margin stood at 4% during the quarter as compared to 0.5% during Q3 September 2020.
During the September quarter, ABB Power Products and Systems India received orders worth Rs 979 crore, growing 10% Y-o-Y from Rs 890.20 crore in Q3 FY21 - driven by the transport sector and industry. A considerable chunk also pertained to orders in the renewable energy sphere, with solar and hydro projects generating significant demand for high voltage and grid integration products. Transformers drew strong interest from rail and metro companies, alongside top utilities to cater to rising power demand.
The service portfolio continued to deliver as the company booked its first RelCare remote asset management order for a 750 MW (mega-watt) solar photovoltaic plant in Rajasthan and grid automation and cybersecurity orders for power stations, metals and petrochemical companies. The consultancy business attracted companies in power, aviation, textile, manufacturing and specialty intermediates for system studies.
Exports remained healthy, contributing more than 18% to the order book in the September quarter. The firm received breakthrough high voltage orders from key utilities in Latin America and eastern Africa as well as an order for our power system studies from an FMCG company in south Asia. As of 30 September 2021, our order backlog stood at Rs 4,896.50 crore, which will unlock revenue streams in the coming months.
N Venu, the chief executive officer (CEO) and managing director (MD) of Hitachi Energy (India), said, There appears to be a gradual recovery in demand, driven by high-growth segments from rail to renewables. We secured meaningful order wins in the September quarter and made solid headway toward our sustainability goals. Yet supply chain constraints, especially from port delays and equipment shortages, weighed on revenue growth. While green shoots of economic revival are starting to become more visible, we remain watchful of potential risks from COVID-19 and other avenues.
Shares of ABB Power Products and Systems India fell 1.75% to close at Rs 2,440.70 on Friday, 22 October 2021. ABB Power Products and Systems is a global leader and pioneer in power technologies. It serves utility, industry and infrastructure customers across the value chain, and emerging areas such as sustainable mobility, smart cities, energy storage and data centers.
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