ABB India's share price rallied over 4% in the morning trade on Tuesday after the company reported better-than-expected Q4 financial results. The stock opened at ₹5470 on the BSE, marking a significant jump from the previous close of ₹5241.20. It further surged to an intraday high of ₹5483.95, reflecting nearly 5% gains within the early trading hours.
The company follows a January to December financial year, making the October-December 2024 quarter its fourth quarter. The results, released post-market hours on Monday, showcased strong revenue growth and profitability, potentially reinforcing investor confidence.
Market Performance and ABB India’s Stock Movement
Despite facing some corrections earlier in the year, ABB India’s stock has remained a favourite among investors. The share price had experienced a 21% correction year-to-date due to broader market fluctuations. However, the stock remains resilient, delivering 22% returns in the past year, reflecting its strong fundamentals and growth trajectory.
ABB India Q4 Results: Revenue, EBITDA, and Profit Growth
ABB India’s Q4FY24 results exceeded market expectations, leading to a surge in stock price. Here’s a breakdown of its key financial performance:
Revenue Growth
- Reported ₹3,365 crore in revenue for Q4CY24, marking a 22% increase from ₹2,757.5 crore in the same quarter last year.
- Growth was primarily driven by the Electrification, Robotics, and Motion segments, which showcased seamless execution in data center orders and export markets.
EBITDA and Margins
- EBITDA rose 58% YoY to ₹657.3 crore, beating market estimates of ₹575 crore.
- The EBITDA margin expanded to 19.5%, reflecting 440 basis points YoY improvement.
- Gross margin improved by 190 basis points compared to the previous year, touching 40.5%, supported by price hikes and efficient cost management.
Net Profit Surge
- ABB India’s net profit jumped 56% YoY, reaching ₹528.4 crore, compared to ₹338.7 crore in Q4FY23.
- The robust demand, stable commodity prices, and a better product mix contributed to this substantial profit increase.
Order Flow and Business Segments Performance
ABB India’s order inflow in Q4CY24 stood at ₹2,695 crore, reflecting a 14% decline YoY due to a high base effect from large one-time orders received in the previous year. However, annually, the company’s total order inflows in CY24 rose 6% YoY to ₹13,079 crore, with 20% of the total mix accounted for by large orders.
Key Business Segments Driving Growth
- Electrification: Strong performance led by data centre projects, export markets, and EPC customers.
- Robotics: Benefited from demand in the electronics and automotive sectors.
- Motion: Increased revenue due to higher traction drives and converter sales.
- Process Automation: Maintained stable performance in the quarter.
Conclusion: ABB India Maintains Strong Growth Momentum
ABB India’s impressive Q4 results, with substantial revenue and profit growth, robust EBITDA margins, and steady order inflows, have potentially reinforced investor confidence. The stock’s over 4% jump post-earnings possibly highlights market optimism regarding its future performance.
With Electrification, Robotics, and Motion segments continuing to drive revenue, ABB India seems to be well-positioned to sustain its growth momentum in the coming quarters.
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