BUSINESS

ABB India enters billion dollar club

COST CUTTING PAYS: Dinesh Paliwal (centre), Chairman of ABB India, with Ravi Uppal (left), Vice Chairman and Managing Director, and K. Rajagopal, Chief Finance Officer, at a press conference in Bangalore on Thursday. PHOTO: V. SREENIVASA MURTHY

COST CUTTING PAYS: Dinesh Paliwal (centre), Chairman of ABB India, with Ravi Uppal (left), Vice Chairman and Managing Director, and K. Rajagopal, Chief Finance Officer, at a press conference in Bangalore on Thursday. PHOTO: V. SREENIVASA MURTHY   | Photo Credit: PHOTO: V. SREENIVASA MURTHY

Special Correspondent

Announces 100 p.c. dividend and stock split

BANGALORE: ABB India on Friday reported a cumulative order intake of Rs. 5,624 crore for the year 2006, a 50 per cent growth over the previous year. Vice Chairman and Managing Director Ravi Uppal told reporters here that "we have entered the $1 billion club.''

Group President for Asia Pacific Dinesh Paliwal said better cash flow certainly allowed for acquisitions and "India can well be a part of it.''

Revenues for the year have increased by 44 per cent to Rs. 4,348 crore from Rs. 3,014 crore. The profit before tax has risen by 54 per cent to Rs. 523 crore (Rs. 340 crore) and the profit after tax by 56 per cent to Rs. 340 crore (Rs. 219 crore). EPS for the year works out to Rs. 80.30 compared to Rs. 51.60 in the previous year. The board of directors has approved a 100 per cent dividend for the year.

The board has also announced a stock split with each share of Rs. 10 would split into five shares of Rs. 2 each.

With new product offerings and entry into new geographical locations, market reach was being extended to over 700 channel partners. The record growth in order intake helped strengthen the company's order backlog further to Rs. 3,362 crore, 60 per cent higher than the previous year.

"The 44 per cent growth in revenue is driven by new orders execution and conversion of a healthy backlog of orders. Continued focus on keeping costs in check and efficient working capital management helped the company achieve a record growth in net profit, Mr. Uppal said.

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