ABB India Shares Surge 4% After Strong Q4 Results; Net Profit Jumps 56%

ABB India Shares Surge 4% After Strong Q4 Results; Net Profit Jumps 56%

Shares of ABB India rose nearly 4% to Rs 5,440 in morning trade on Tuesday, February 18, following the company’s impressive financial results for the October-December 2024 quarter. The stock broke a three-day losing streak, reflecting positive investor sentiment after the strong performance.

The industrial equipment and power systems manufacturer reported a remarkable 56% increase in its net profit, reaching Rs 528.41 crore, up from Rs 338.68 crore in the same period last year.

The company’s revenue for the quarter was Rs 3,365 crore, a 22% increase from Rs 2,757.5 crore in the previous year. This marked the highest quarterly revenue for the December-ended period in the last five years.

As of December 2024, ABB India’s order book stood at Rs 9,380 crore, driven by Rs 2,695 crore in new orders. However, order inflows declined by 14% compared to the previous year, partly due to a high base from 2023, which included substantial one-time orders from Motion and Process Automation.

The company’s board recommended a final dividend of Rs 33.50 per share, subject to shareholder approval at the upcoming Annual General Meeting.

Sanjeev Sharma, Managing Director of ABB India, stated, “2024 has been another year of record-high orders, revenue, and margins.” He added, “I am proud of the ABB India team, who have consistently delivered 16-20% CAGR in both top-line and bottom-line growth over the last five years, navigating through multiple capex cycles and geopolitical changes. Our customer-centric approach drives growth alongside our partners.”

Sharma also emphasized the company’s “local for local” strategy, highlighting its diversified portfolio across various customer segments. He expressed confidence in navigating emerging opportunities in India’s dynamic and expanding market base.

Brokerage firm Motilal Oswal highlighted ABB India’s strong performance, with revenue surpassing expectations by 7%. The firm noted that the 22% YoY growth was mainly driven by Electrification, which saw a 33% increase, fueled by data centre orders, EPC projects, and export markets in the Distribution Solution division. The Robotics and Motion segments also performed well, capitalizing on demand from the electronics, automotive, and traction drives sectors.

Motilal Oswal has given a ‘Buy’ recommendation for ABB India with a target price of Rs 5,241.

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