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Target: ₹3,500
CMP: ₹3,148.50
ABB India witnessed a solid growth across all segments. Total revenue increased by 16 per cent YoY (15 per cent QoQ) to ₹2,430 crore, as against our estimates of ₹2,520 crore. Motion business witnessed the highest YoY revenue growth of 23 per cent at ₹940 crore in Q4-CY22, followed by 15 per cent y-o-y growth in Robotics. Electrification grew by 12 per cent YoY while Process automation registered 9 per cent YoY growth.
ABB delivered a healthy operating performance led by consistent focus on execution, value-added volume mix, and consistent deliveries to the customers. EBITDA increased by 97 per cent YoY and 73 per cent QoQ to ₹360 crore (our est. of ₹240 crore), while EBITDA margin expanded by 620 bps YoY to 15 per cent, (our estimate of 9.4 per cent).
Adjusted PAT came in at ₹310 crore, up 108 per cent YoY (95 per cent QoQ), vs. our estimate of ₹190 crore. Order backlog at the end of Q4-CY22 stood at ₹6,470 crore (32 per cent YoY) provides revenue visibility, while order inflow during Q4-FY22 grew by 4 per cent YoY to ₹2,330 crore.
In view of strong capex uptick, high earnings growth and backing by ABB global, we maintain our Buy rating with an unrevised target price of ₹3,500.
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