ABB India (500002) Q4 23/24 earnings summary

Executive summary

• Achieved record revenue of ₹12,188.31 crore and net profit of ₹1,871.64 crore for FY 2024, with double-digit growth and all-time high ROCE.

• Order backlog grew 12% year-over-year, providing strong revenue visibility for the next four quarters.

• Sustainability initiatives led to an 86% reduction in GHG emissions since 2019, with 40% of suppliers enrolled in ESG programs.

• Board approved a final dividend of ₹33.50 per share, total dividend payout up 51% year-over-year, totaling ₹44.16 per share.

• Engaged with over 5,000 customers across 30+ tier II & III markets, expanding portfolio and sustainability initiatives.

Financial highlights

• Q4 revenue was ₹3,364.93 crore, up 22% year-over-year; full-year revenue up 17% to ₹12,188 crore.

• Q4 PAT increased 54% year-over-year to ₹532 crore; full-year PAT up 50% to ₹1,875 crore.

• Cash balance at year-end stood at ₹5,390 crore, with 90% of PBT converted to operating cash.

• Return on capital employed reached 26.5%, up 560 bps year-over-year.

• Earnings per share for the year stood at ₹88.32, up from ₹58.61 year-over-year.

Outlook and guidance

• Management expects growth cycles to continue, viewing recent order moderation as transient.

• Strong pipeline and backlog support positive revenue visibility; 65%-70% of backlog expected to be executed in the next year.

• Monitoring global economic volatility, commodity prices, and currency fluctuations.

• Margin corridor expected to normalize to 12%-15% PAT as market conditions stabilize.

• No specific forward-looking financial guidance was provided, but robust results and dividend payout reflect confidence in future performance.