ABB India (500002) Q2 23/24 earnings summary

Executive summary

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

• Profit after tax increased by 50% YoY, driven by a favorable revenue mix and superior order execution.

• Operational EBITDA/EBITA rose 64% YoY for the quarter, with an interim dividend of INR 10.66 per share approved.

• Record high profitability and strong cash position maintained, with the company remaining debt-free.

• 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).

• Operational EBITDA/EBITA margin improved to 19.2% in Q2 2024; PBT margin at 21%.

• Earnings per share (EPS) for H1 2024: INR 24.41 (+67% YoY); basic EPS for Q2 2024: INR 20.93.

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

• Operating profit before working capital changes for H1 2024 was ₹1,131.70 crore, up from ₹656.50 crore in H1 2023.

Outlook and guidance

• Management expects continued growth, supported by a strong order pipeline and positive market momentum across sectors.

• Anticipates increased base orders in coming quarters, especially from Tier 2 and Tier 3 cities and infrastructure projects.

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

• Margins expected to stabilize as commodity price advantages thin out.