This Automation stock which deals in the business of integrated power equipment and manufacturing & supplying of a range of engineering, solutions, products, and services in areas of Power and Automation technology, surged upto 5 percent after the company reported net profit growth of 56 percent year on year with an order book of Rs. 9,380 crores.
Price Movement
ABB India Ltd (NSE:ABB)‘s stock in Tuesday’s session touched a day’s high of Rs. 5,511 which was 5.14 percent higher. The stock reiterated from the day’s high and was trading at Rs. 5,499.85 per share up by 4.93 percent from the previous closing price of Rs. 5,241.20. The stock has delivered a return of around 21.75 percent in the past year and has outperformed the Nifty Index in the same period.
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Financial Performance
The company’s stock surged after ABB India’s financial performance for Q4CY24 results show revenue from operations of Rs. 3,364.93 crore which increased by 22.02 percent year on year, from Rs. 2,757.49 crore in Q4CY23 and a 15.54 percent increase from Rs. 2,912.16 crore in Q3CY24.
Their net profit increased by 56.02 percent year on year, from Rs. 338.66 crores in Q4CY23 to Rs. 528.41 crores in Q4CY24. Quarterly, the profits increased by 19.97 percent to Rs. 440.45 crore.
The EBITDA margins rose from 15.1 percent in Q4CY23 to 18.6 percent in Q4CY24. Further, the Profit after Tax (PAT) margins rose from 12.5 percent to 15.1 percent in the same period. The RoCE stood at 26.5 percent in 2024.
Management Commentary
Commenting on the Results, the MD of ABB India, Sanjeev Sharma said “ I am proud of the ABB India team who have consistently delivered between 16 percent and 20 percent CAGR of top and bottom-line growth for the last five years through multiple capex cycles and geopolitical shifts.
Our relentless customer-centricity enables us to grow alongside our partners. We follow “local for local” strategy with a diversified portfolio deployed in multiple, diversified customer segments. We stay prepared to navigate pockets of opportunities as they arise in India’s vibrant and broadening market base. Our growth areas are well balanced between core segments that follow capex cycles, emerging segments growing rapidly on a smaller base, and steady growth segments to deliver consistent performance.”
Order Book
The company’s order book stood at Rs. 9,380 crore as of Q4CY2024. For the 4th quarter of CY2024, the order inflow was Rs. 2,695 crore. Some of the Q4 orders include solar pump drives for water systems in northern India. Distribution and control systems for a global data center, automation solutions for electrification in metals manufacturing, and advanced control solutions for photovoltaic and hybrid plants, totalling ~ 6GW.
Dividend Announcements
ABB India’s Board has recommended a final dividend of Rs. 33.50 per share which is 1,675 percent on the face value of Rs. 2. The dividend is subject to shareholder’s approval. The Annual General Meeting (AGM) of the company is dated on 10th May 2025.
Company’s Outlook
“While the company remains a beneficiary of the government’s capex investments in mega infrastructure and renewable projects, it is also able to convert business opportunities in limited industrial capex in metals and mining, energy and chemicals as well as buildings and data centers. ABB India is also well positioned in some segments like chemicals, pharma, automotive, power distribution, water, electronics, and digitalization which are projected to receive investments in 2025.” as per the company’s result website.
Revenue Segments
As per the recent December 2024 results, the company recognizes its revenue from operations from Robotics & Discrete Automation which contributes around 4.11 percent, 32.96 percent from Motion, 44.25 percent from Electrification, 18.48 percent from Process Automation, and the remaining 0.17 percent from others.
About the company
ABB India is a leading engineering company that provides automation and power technologies. The company was established in 1949, it operates across 23 sectors, offering solutions.
Written by Santhosh S
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