In a buoyant display amidst a subdued market, ABB India’s shares surged by 8%, reaching a new pinnacle at Rs 7,792, following the announcement of robust earnings for the March quarter of 2024. The company reported a remarkable 87.8% year-on-year increase in profit after tax (PAT), reaching Rs 460 crore. Revenue also experienced a substantial growth of 27.7% year-on-year, amounting to Rs 3,080 crore, driven by impressive performances across its Electrification, Process Automation, and Robotics & Motion segments.

A significant highlight was the expansion of operational earnings before interest, taxes, and amortization (Ebita) margins by 530 basis points, rising to 16.7% from 11.4%. ABB attributed this margin growth to various factors, including operational leverage, continuous improvement initiatives, positive pricing impacts, and a higher share of service and export revenues.

Total orders surged to Rs 3,607 crore, marking the highest for a first quarter in the past five years, while the total order backlog stood at Rs 8,932 crore, indicating a robust pipeline of future business opportunities.

Looking ahead, ABB anticipates ample growth opportunities arising from increased capital expenditure in infrastructure, railways, renewables, and various other sectors. The company is strategically positioned to capitalize on private capex, industrial automation, PLI-led capex, global offshoring, improved energy demand, and technological advancements across various user industries.

Analysts have expressed optimism about ABB’s prospects, citing its strong positioning in domestic markets and its ability to benefit from favorable industry trends. With a reputation as a quality player with control over the value chain, ABB is expected to continue reaping the benefits of an improved product mix, higher services share, and better operating leverage.

Motilal Oswal Financial Services highlighted ABB’s impressive return on invested capital (RoIC) in the capital goods sector and expects the company to sustain its gains amid a robust demand environment. They anticipate a favorable outlook for ABB in the coming years, driven by sustained demand and improved market share in high-growth segments.

Overall, ABB India’s stellar performance in the first quarter of 2024 reflects its resilience and strategic positioning in the market, positioning it for continued success in the future.



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