Electrification and automation major ABB India reported over 87 per cent rise in its net profit at ₹460 crore in the March 2024 quarter as compared to ₹245 crore in the corresponding period of the previous fiscal year.
During the quarter, the revenues from the operations stood at ₹3,080 crore, up 28 per cent from ₹2,411 crore in the year-ago period. The company follows the financial year from January to December.
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The company’s order backlog stood at ₹8,932 crore, up from ₹7,170 in January-March quarter earlier.
“We are pleased to announce a strong start to 2024, building on our robust performance from Q4 of 2023. The increased demand for technologically superior solutions, coupled with the government’s capital expenditure focus on new-age themes such as energy efficiency, decarbonization, and digitalization, has significantly driven our order momentum. Our team’s relentless dedication to execution continues to be a pivotal factor in maintaining strong customer confidence and preference for ABB India’s innovative and reliable solutions. We are also proud to highlight our ongoing commitment to sustainability; this quarter, half of ABB India’s campuses achieved water positivity, and we have achieved an 88 per cent reduction in greenhouse gas emissions (scope 1 and 2) compared to the baseline year of 2019,” said the company in its statement.
ABB India’s total orders surged to Rs 3,607 crore, the highest for the first quarter in the last five years. The quarterly growth was led by our Electrification & Process Automation business areas, which more than offset the temporary customer decisions sluggishness in Motion and Robotics & Discrete Automation business areas. From the market point of view, the strongest growth was witnessed in data centres, smart buildings, expansion in tier 2 & 3 cities, energy and logistics, said the company.
At the operating level, the EBITDA surged 98.1 per cent to ₹565.2 crore in the first quarter of this fiscal over ₹285 crore in the corresponding period in the previous fiscal. The company’s cash position continues to remain robust at ₹5,036 crore at the end of Q1 2024 vis-a-vis ₹3,942 crore in Q1 CY23.
In terms of outlook, the company stated that with higher capex in infrastructure, railways, renewables, power distribution, water, energy, commercial buildings, and metals are likely to provide necessary opportunities for growth. Policy driven public sector capex, with investments in energy transition, FDI in steel, cement, and incentivizing local production (PLI) in areas like specialty steel and battery manufacturing will also ‘augment the opportunity landscape.’