ABB India rallies 9% as order book rises 35% in Dec qtr, PAT jumps 13%

ABB India shares rallied 9.3 per cent to Rs 4,945 per share, nearing their 52-week high level of Rs 4,984, on the BSE in Wednesday's intraday trade after the company reported around 13 per cent rise in net profit in the December quarter.

At 11:30 AM, stock of the electricla equipment maker was ruling near the day's high level of Rs 4,930, up 9 per cent, as against 0.03 per cent dip in the benchmark S&P BSE Sensex. 

ABB India had clocked Rs 306 crore PAT during the corresponding quarter of the preceding fiscal. The company follows January to December as a financial year.

 

Total revenue of the company rose to Rs 2,757 crore in the quarter under review, up 14 per cent from Rs 2,427 crore clocked in the same quarter a year ago, driven by Robotics &

Motion (up 2 per cent), Electrification (up 19 per cent), and Process Automation (up 23 per cent).

Gross margin came in at 37.5 per cent, which expanded around 140bp Y-o-Y/80bp Q-o-Q, likely led by a favorable product mix.

Ebitda (earnings before interest, tax, depreciation, and amortisation) came in at Rs 410 crore, 15 per cent Y-o-Y, while margin stood flat Y-o-Y/down 70bps Q-o-Q at 15.1 per cent.

"Strong traction in large orders continued during Q4CY23. Sectors that significantly contributed to growth in Q4 included railways, metals, data centers, cement, specialty chemicals, and construction machinery," analysts at Motilal Oswal Financial Services noted in a first cut report.

The brokerage has 'Buy' rating on the stock, and awaits further details from the company's analyst call, scheduled to be held on Wednesday, February 21.

In the fourth quarter, total orders rose up by 35 per cent to Rs 3,147 crore. In 2023, the company received orders worth Rs 12,319 crore, up 23 per cent over 2022.

On an annual basis, revenue/Ebitda/PAT came in at Rs 10,440 crore/Rs 1,490 crore/Rs 1,240 crore, up 22 per cent/55 per cent/80 per cent Y-o-Y. Ebitda margin expanded ~310bp to 14.3 per cent.

Its board also recommended a final dividend of Rs 23.8 per share.