In This Article:
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Order Growth: Orders increased by 11%, with a mix of large and base orders.
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Revenue: Up by over 5% due to execution of base orders.
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Profit Before Tax: Increased by 22% driven by revenue mix and margin capture.
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Order Backlog: Approximately INR 10,000 crore, with 25% large orders and 75% base orders.
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Cash Position: Strong cash position with inventory built up for backlog execution.
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Capital Expenditure: Cumulative CapEx of INR 125 crore for the last nine months.
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Electrification Orders: INR 1,776 crore in Q3, supported by data center and export orders.
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Motion Segment: Orders slightly above last year despite absence of large railway order.
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Process Automation: Delays in orders from the metric and oil & gas sectors, but strong pipeline.
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Robotics and Discrete Automation: Growth in select market segments like electronics and pharma.
Release Date: November 05, 2024
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 an 11% increase in orders, indicating strong demand and a healthy order pipeline.
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The company's profit before taxes increased by 22%, driven by a favorable revenue mix and efficient order execution.
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ABB India Ltd has achieved significant milestones in sustainability, including CO2 compliance certification for its Nelamangala facility.
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The company has a strong export presence, serving over 30 countries, which diversifies its revenue streams.
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ABB India Ltd continues to see robust demand in high-growth segments such as data centers and renewable energy, contributing to a positive market outlook.
Negative Points
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The conversion rate of large orders may slow down due to their longer gestation periods, potentially impacting revenue growth.
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There is a noted softening in demand from heavy industries like steel and cement, which could affect future order inflows.
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The LT motor segment has faced pricing pressures and demand fluctuations, impacting its performance.
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Some large orders in process automation have been delayed due to decision-making processes, affecting short-term revenue visibility.
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The company faces competition in capacity expansion from both global and local players, which could pressure market share and pricing.
Q & A Highlights
Q: Can you provide insights into the pricing and demand trends for the LT motor segment, and any restocking activities post-elections? A: Sanjeev Arora, President of Motion Markets, noted that LT Motors faced pricing challenges, but the erosion has stopped. The demand cycle is expected to improve post-elections, with government investments likely to boost industry morale and stabilize prices.