Gains in tech firm ABB India may sustain on strong margin outlook

ABB is well positioned to benefit from private capex growth, industrial automation, PLI-led capex, global offshoring, improved energy demand, and technological advancements across user industries

ABB India’s March quarter results (Q1CY24) were led by strong margin performance. Revenue was, however, largely in line with estimates at Rs 3,080 crore (up 28 per cent Y-o-Y and up 12 per cent Q-o-Q). The growth was across electrification (30 per cent Y-o-Y), process automation (73 per cent Y-o-Y) and robotics & motion (8 per cent Y-o-Y).

The gross margin at 40.2 per cent saw a healthy 390 basis points Y-o-Y (270 basis points Q-o-Q) expansion, led by better product mix, improved pricing power, higher share of services and exports, more localisation, and cost control. Employee costs moved up