ABB India reports 50% rise in Q2 net profit; Stock closed in green

The company’s operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in higher by 64% YoY at ₹558 crore. The operational EBITDA margin expanded to 19.7% compared to 13.6% in the corresponding period last year. Meanwhile, the net profit margin grew to 15.7% from 11.8% in the same period last year.

The company stated that better margin orders, revenue mix, positive price development, and optimisations helped support the growth in profitability.

ABB India reported a 13% YoY rise in orders to ₹3,435 crore while the order backlog grew 23% YoY to ₹9,517 crore.

During the quarter, the company saw growth in long-cycle orders from emerging industry segments such as data centers, renewables, electronics, metro, and railways. The company also benefited from growth in the core industry segments. The company saw revenue growth across electrification, motion, and process automation.

Sanjeev Sharma, managing director of ABB India stated that the company saw positive market momentum which was supported by the national focus on energy transition. The company aims to leverage the momentum to diversify its offerings in the energy efficiency space.

“The positive market momentum and the national focus on energy transition and infrastructure bodes well with ABB India's energy efficiency portfolio, allowing us to leverage the momentum to make inroads and strengthen our offerings in this space,” he said.

The company’s board of directors approved an interim dividend of ₹10.66 per share.

Shares of the company have risen by nearly 71% since the beginning of the year. The stock has gained over 77% in the past year.