ABB India (500002) Q2 23/24 earnings summary

Executive summary

• Orders and revenues grew 13% year-over-year in Q2 2024, with strong momentum from emerging sectors and robust execution across all divisions.

• Profit after tax increased by 50% year-over-year, driven by favorable revenue mix and superior order execution.

• Operational EBITDA/EBITA rose 64% year-over-year, and an interim dividend of INR 10.66 per share was approved.

• Record high profitability and strong cash position maintained in H1 2024.

• Unaudited financial results for the quarter and half year ended June 30, 2024, were approved by the Board on August 8, 2024.

Financial highlights

• Q2 2024 orders: INR 3,607 crore (+13% YoY); revenue: INR 2,831 crore (+13% YoY); PAT: INR 443 crore (+50% YoY); order backlog: INR 9,517 crore (+23% YoY).

• EBITDA margin at 19%, PBT margin at 21%, with material cost reduced to 57% from 63% year-over-year.

• EPS expanded by 67% year-over-year to INR 24.41 for H1 2024.

• Cash balance at INR 4,872 crore after dividend payout; free cash flow conversion in line with PAT.

• Revenue from operations for Q2 2024 was ₹2,830.86 crore, up from ₹2,508.63 crore in Q2 2023.

Outlook and guidance

• Strong order backlog across all business areas provides good revenue visibility for upcoming quarters.

• Growth momentum expected to continue, supported by demand from data centers, renewables, and transportation.

• Base orders anticipated to increase in coming quarters, with continued growth in Tier 2 and Tier 3 cities.

• Management expects the current growth trajectory to continue, leveraging India's investment climate.

• Interim dividend of ₹10.66 per equity share declared.