ABB India has posted remarkable financial results for the fourth quarter of 2024, showcasing substantial growth across several key performance indicators. The company reported a stunning 56% year-on-year increase in net profit, reaching ₹528.4 crore, compared to ₹338.7 crore for the same period last year. This significant rise is attributed to various strategic initiatives and operational efficiencies implemented during the year.
Revenue from operations also saw impressive growth, climbing 22% to ₹3,364.9 crore, up from ₹2,757.5 crore the previous year. This surge marks ABB India's highest-ever quarterly revenue recorded over the last five years, solidifying its position as a leader within the electrification and automation sectors. The earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 57.6%, reaching ₹657.3 crore, also reflecting the company's effective cost management and enhanced operational performance.
Sanjeev Sharma, Managing Director of ABB India, remarked on the company’s performance: "2024 has been another year of record high orders, revenue, and margins. Our local for local strategy allows us to address diverse market segments successfully, keeping us aligned with government infrastructure investments and burgeoning industrial demands.”
The EBITDA margin improved significantly during this quarter, rising to 19.5% from 15.1% previously, showcasing ABB India's efficiency during this financial period. These positive indicators have made ABB India shares attractive to investors, evidenced by the stock’s rise post-announcement, which saw it gain over 4% on the stock exchange.
Investors' optimism was also bolstered by the Board of Directors’ recommendation for a final dividend of ₹33.50 per share, which amounts to a staggering 1,675% on its face value of ₹2 per share. This dividend announcement is subject to shareholders' approval at the upcoming Annual General Meeting scheduled for May 10, 2025, with the record date set for May 3, 2025. Earlier, ABB India had declared ₹10.66 as the interim dividend per equity share for the second quarter of the financial year.
To provide additional insights, the company's total orders for the quarter amounted to ₹2,695 crore, showing stable base orders growth of 4%. Nonetheless, total orders experienced some decline due to the absence of one-time large orders seen in the previous year. Despite this, total order inflows for the financial year stood at ₹13,079 crore, indicating they navigated the market dynamics effectively through their diversified portfolio.
According to Motilal Oswal Financial Services, ABB's financial results beat analyst expectations, highlighting remarkable growth across all business areas. The surge was particularly driven by the Electrification segment, which reported substantial execution of data center orders and solid export performance, alongside consistent contributions from Robotics and Motion segments.
The company’s growth reflects its commitment to innovation and responsiveness to the Indian market’s needs by leveraging its established local manufacturing capabilities. The positive financial results have led to ABB India shares hitting intraday highs of ₹5,494.05, showcasing investor confidence.
ABB India’s management maintains optimism about future performance, stating their preparedness to navigate diverse opportunities within India's growing industrial sector. They emphasized their strategy of focusing on local demand, enabling them to capture market share within 23 different segments effectively.
Summarizing the positive outlook, Sharma noted, "We stay prepared to navigate pockets of opportunities as they arise, driven by our strong management and unwavering commitment to our clients and stakeholders." The company’s consistent performance, coupled with its shareholder-friendly approach through dividend declarations, marks it as one to watch closely for potential investors.
For the investors and market watchers, ABB India’s strong results reflect a combination of strategic execution, market adaptability, and solid financial health, setting the stage for continued success as the company looks to capitalize on India's infrastructure growth and renewable energy projects.
With ABB India celebrating its 75th year of manufacturing and innovation, these financial achievements and dividend announcements symbolize its resilience and capability to adapt to ever-changing market dynamics, promising significant future progress.
Investors should stay updated as ABB India’s annual general meeting approaches, where shareholders will vote on the proposed final dividend, which will provide additional insights on company direction and future strategies moving forward.