ABB India Released Q1 CY2024 Performance: Revenue Increased 28% YoY

ABB India Limited recently released results for the first quarter ended March 31, 2024 (Q1 CY2024). The company reported sales of ₹3,080 crore for the first quarter, up 28% year over year, thanks to a robust backlog, an installed base, and the market reach of all business divisions. Services and exports were also major contributors to the revenue momentum.

To capitalise on growth, ABB India keeps adding new products to its inventive range. During the quarter, the compact drive ACH180 was introduced into the HVACR (heating, ventilation, air conditioning, and refrigeration) equipment sector.

For the first quarter of CY2024, the company recorded a profit before tax (before exceptional items and one-offs) of ₹617 crore, with the four business segments making substantial contributions. Increased operational leverage on larger volumes, smooth implementation of CPI programmes, favourable pricing impact sufficient to counteract cost increases and inflation, a larger proportion of service and export income, and stable currency and commodity prices were the main causes of the margin expansion.

The total number of order values reached ₹3,607 crore, a record high for the first quarter of the past five years. The growth in orders demonstrates our multi-division portfolio’s ability to catch several market cycles. The Electrification & Process Automation business areas led the quarterly growth, more than offsetting the temporary slowdown in client decisions in the Motion and Robotics & Discrete Automation business areas.

Looking Ahead

In order to promote qualitative growth, the company will take advantage of chances in developing sectors and balance and strengthen its current presence in traditional segments. Increased capital expenditures in the areas of infrastructure, railroads, renewable energy, power distribution, water, energy, commercial buildings, and metals are probably going to offer essential growth opportunities.

The opportunity landscape will also be enhanced by policy-driven public sector capital expenditures, investments in energy transition, foreign direct investment (FDI) in steel and cement, and local production (PLI) incentives in sectors including speciality steel and battery manufacturing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.