ABB India Shares Jump 4% After Strong Q4 Results; Net Profit Soars 56%

Shares of ABB India jumped nearly 4% to Rs 5,440 in morning trade on Tuesday, 18 February, after the company reported strong December quarter results. The stock broke its three-day losing streak, reflecting positive investor sentiment following the impressive financial performance.

The manufacturer of industrial equipment and power systems reported a robust 56% increase in its net profit to Rs 528.41 crore for the October-December 2024 quarter, compared to Rs 338.68 crore during the same period last year.

The company’s revenue stood at Rs 3,365 crore, up 22% from Rs 2,757.5 crore reported in the year-ago period. Notably, this is the highest-ever quarterly revenue for the December-ended period in the last five years.

As of December 2024, the company’s order book stood at Rs 9,380 crore, on account of Rs 2,695 crore in new orders. However, the order inflows declined by 14% compared to the same period last year, due to a high base from the previous year that included significant one-time orders from Motion and Process Automation.

The board of directors recommended a final dividend of Rs 33.50 per share, subject to shareholders’ approval at the ensuing Annual General Meeting.

Sanjeev Sharma, Managing Director at ABB India, said, “2024 has been another year of record-high orders, revenue and margins.” 

“I am proud of the ABB India team who have consistently delivered between 16% and 20% CAGR of top and bottom-line growth for the last five years through multiple capex cycles and geopolitical shifts. Our relentless customer centricity enables us to grow alongside our partners. We follow a ‘local for local’ strategy with a diversified portfolio deployed in multiple, diversified customer segments,” Sharma said.

“We stay prepared to navigate pockets of opportunities as they arise in India’s vibrant and broadening market base. Our growth areas are well balanced between core segments that follow capex cycles, emerging segments growing rapidly on a smaller base, and steady growth segments to deliver consistent performance,” he added.

ABB India reported a good set of numbers in 4QCY24, with a beat across all parameters, brokerage firm Motilal Oswal said in a report.

According to Motilal Oswal, the quarterly revenue stood at Rs 3,365 crore, marking a 22% year-on-year growth, surpassing their expectation of Rs 3,140 crore by 7%.

This strong performance was primarily driven by Electrification, which saw a 33% YoY increase, thanks to the successful execution of data centre orders, EPC customer projects, and export markets within the Distribution Solution division, the brokerage firm said.

The Robotics vertical also performed well, capitalising on opportunities in the electronics and automotive segments. Revenue growth in the Motion segment was supported by strong demand for traction drives and converters. Meanwhile, the Process Automation segment remained stable during the quarter, it added.

The brokerage firm has given a ‘Buy’ recommendation on the stock with a target price of Rs 5,241.