Electrification and automation major's net profit (from continuing operations) surged 87.46% to Rs 459.60 crore in Q1 CY24 as against Rs 245.17 crore recorded in Q1 CY23.
The companys total revenue from operations jumped 27.75% to Rs 3,080.36 crore in Q1 CY24 as compared to Rs 2,411.21 recorded in corresponding quarter last year.
The revenue growth was leveraging on a strong backlog, installed base and market reach of all business divisions. Export and service also played a significant role in the revenue momentum.
The company's income from Robotics & Discrete Automation stood at Rs 109.15 crore (up 61.63% YoY), Motion revenue was at Rs 1,012.79 crore (up 4.17% YoY), Electrification revenue came in at Rs 1296.25 crore (up 29.7% YoY) and income from Process Automation stood at Rs 726.30 crore (up 72.86% YoY), during the period under review.
The firm reported a profit before tax (before exceptional items and one-offs) of Rs 617 crore for Q1 CY24, up 88.22% YoY , with significant contribution from the four business areas.
During the quarter, operational EBITA soared 87.59% year on year to Rs 514 crore. Operational EBITA margin improved to 16.7% in Q1 CY24 as compared with 11.4% recorded in Q1 CY23.
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The companys total orders grew by 15.42% to Rs 3,607 crore, the highest for the first quarter in the last five years. Growth in orders underlines the success of the firms multi-division portfolio to capture different cycles in the market segments, said ABB India.
The quarterly growth was led by the companys electrification & process automation business areas, which more than offset the temporary customer decisions sluggishness in motion and robotics & discrete automation business areas. From the market point of view, the strongest growth was witnessed in data centers, smart buildings, expansion in tier 2 & 3 cities, energy and logistics, the companys stated in the press release.
ABB India continues to have a consistently growing order backlog as of 31 March 2024, at Rs 8,935 crore, which provides revenue visibility and is well aligned to support growth plans in the coming quarters, it added.
The companys cash position continues to remain robust at Rs 5,036 crore at the end of Q1 2024 as against Rs 3,942 crore in Q1CY 2023.
ABB India said, The increased demand for technologically superior solutions, coupled with the government's capital expenditure focus on new-age themes such as energy efficiency, decarbonization, and digitalization, has significantly driven our order momentum. We have achieved an 88% reduction in greenhouse gas emissions (scope 1 and 2) compared to the baseline year of 2019.
With respect to its outlook, the company stated, India has been able to stay the course on its growth momentum and capex revival despite geopolitical challenges across the globe. With this background, ABB India is likely to balance and deepen its existing presence in traditional segments while leveraging opportunities in emerging sectors to drive quality growth. Higher capex in infrastructure, railways, renewables, power distribution, water, energy, commercial buildings, and metals are likely to provide necessary opportunities for growth.
Policy driven public sector capex, with investments in energy transition, FDI in steel, cement, and incentivizing local production (PLI) in areas like specialty steel and battery manufacturing will also augment the opportunity landscape. While navigating the market segments and the opportunities, the company will closely monitor the impact of geopolitics on business issues and trade, the cyclicity of heavy industries, volatility in commodity prices and foreign exchange, and the impact of inflation on cost and interest rates.
ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation.
Shares of ABB India advanced 2.76% to end at Rs 7,182.15 on Friday, 10 May 2024.
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