In This Article:
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Orders Growth: Expanded by 4% year-on-year.
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Revenue Growth: Increased by 3% year-on-year.
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Profit After Tax: Increased by 3% year-on-year.
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Cash Balance: INR 5,756 crores.
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Order Backlog: Increased by 11% to INR 9,958 crores.
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Exports Growth: Increased by 40% in the quarter.
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Operational EBITDA Margin: 16.4% for the quarter.
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Electrification Division Revenue: INR 1,300 crores.
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Motion Division Revenue: INR 1,104 crores.
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Profit Before Tax Margin: 20% for the quarter.
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Base Orders Growth: Increased by 10%.
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ABB India Ltd (BOM:500002) reported a 4% increase in orders and a 3% increase in both revenues and profit after tax for Q1 2025, indicating steady growth.
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The company expanded its portfolio with new products, such as low-voltage frameproof motors and modular Lora switches, enhancing its market offerings.
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Exports grew by 40% in the quarter, showcasing strong international demand for ABB India Ltd's products.
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The company achieved significant sustainability milestones, including an 87% reduction in Scope 1 and 2 GHG emissions compared to 2019 levels.
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ABB India Ltd was recognized for its sustainability and CSR practices, receiving an award from the Asian Center of Corporate Governance and Sustainability.
Negative Points
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The process automation segment showed weakness, with negative growth for the last three quarters, reflecting challenges in large project orders.
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Order inflow growth was soft, with only single-digit growth this quarter, and a previous quarter of negative growth, indicating potential market sluggishness.
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There is uncertainty in large project decision-making due to macroeconomic factors, which could impact future revenue growth.
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The company faces competitive pressures in certain product categories, which may affect pricing and margins.
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Despite a strong export growth, the overall percentage contribution from exports and services remains range-bound, suggesting limited diversification in revenue streams.
Q & A Highlights
Q: Given the macroeconomic uncertainties, do you expect a shift from double-digit to single-digit revenue growth for this year? A: Sanjeev Sharma, Managing Director, noted that the process automation business, which is about 10% of their portfolio, is affected by customer confidence in large projects. While some projects are delayed, they remain in the pipeline. The base business remains robust, and the company is optimistic about maintaining growth, though large project decisions are sluggish in the first quarter.