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, driving robust demand and record order backlog.

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

• Profit before tax increased 22% year-over-year, attributed to favorable revenue mix, margin capture, and strong capacity leverage.

• Operational EBITA surged 33% year-over-year for Q3 2024.

• Sustainability achievements include CO2 zero certification for the Nelamangala campus and top national rankings in sustainability.

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 (PBT) 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%.

• Cash balance at quarter end was INR 5,001 crore.

Outlook and guidance

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

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

• Execution of large orders will align with project milestones, potentially moderating revenue conversion velocity.

• No signs of stagnation in backlog; execution expected to remain steady barring customer-related delays.

• Risks include domestic inflation, high lending rates, and global geopolitical uncertainties.