ABB India (500002) Q3 23/24 earnings summary

Executive summary

• Orders grew 11% year-over-year, with a notable increase in large contracts, especially from data centers, railways, and core sectors; record order backlog and robust demand across all business segments.

• Revenue rose 5% year-over-year, driven by execution of base orders and improved margin mix.

• Profit before tax increased 22% year-over-year, supported by favorable revenue mix, operational efficiencies, and capacity leverage.

• Sustainability achievements include CO2 zero certification for the Nelamangala campus, Nashik plant platinum rating, and top national rankings in sustainability.

• Unaudited Q3 2024 results were approved by the Board, with auditors issuing an unmodified opinion.

Financial highlights

• Total orders for Q3 2024 reached INR 3,342 crore, up 11% year-over-year; order backlog at INR 9,995 crore, up 25% year-over-year.

• Revenue for Q3 2024 was INR 2,912 crore, up 5% year-over-year; YTD revenue up 15%.

• Profit before tax for Q3 2024 was INR 597 crore, up 23% year-over-year; PAT at INR 440 crore, up 22%.

• Operational EBITA for Q3 2024 was INR 478 crore, up 33% year-over-year; EBITDA margin improved to 18.6%.

• Strong cash position maintained, with cash balance at INR 5,001 crore and CapEx of INR 125 crore in the last nine months.

Outlook and guidance

• Order backlog stands at nearly INR 10,000 crore, with 25% large orders and 75% base orders, providing visibility for the next four quarters.

• Growth trend expected to remain healthy, fueled by private and public sector investments, Make in India, and infrastructure spending.

• No signs of stagnation in project execution; backlog expected to be executed smoothly barring customer-related delays.

• Market segments like data centers, renewables, and transport expected to drive growth, while heavy industries show temporary softness.

• The Board and Audit Committee reviewed and approved the financial results, indicating continued focus on compliance and governance.