May 8 (Reuters) – Engineering services firm ABB India reported a fourth consecutive drop in quarterly profit on Friday, as higher input costs and foreign exchange volatility weighed on margins.
Here are some details:
• The Indian unit of Switzerland’s ABB reported a 25% year-on-year fall in its profit from continuing operations to 3.42 billion rupees ($36.20 million) in the January-March quarter.
• Revenue from operations rose 5.8% to 31.84 billion rupees, helped by a 15% increase in its electrification segment – its largest business.
• Total orders jumped 25% to 42.8 billion rupees.
• Cost of raw materials grew 11%, lifting total expenses by 13.4%.
• ABB India said profitability was hurt by lower-margin orders, higher input costs and forex volatility, along with slower project execution.
• Geopolitical tensions in West Asia caused limited export disruptions but increased logistics costs and delayed supply timelines, it added.
• Analysts at Motilal Oswal had earlier flagged weakness in the process automation business, which supplies industrial automation systems, and likely margin contraction as near-term headwinds.
($1 = 94.4800 Indian rupees)
(Reporting by Aleef Jahan and Devika Nair in Bengaluru; Editing by Sonia Cheema)