ABB India shares jump 9% on reporting highest Q4 revenue in five years

Shares of ABB India Ltd surged more than 9% on Wednesday after the company reported a double-digit rise in net profit for the quarter ending December 31, 2023.

The engineering services company’s net profit rose 13% on a year-on-year (YoY) basis to ₹345 crore in the December quarter. Its revenue from operations grew 14% to ₹2,757 crore in the period, which is the company’s highest December quarter revenue in the last five calendar years.

The company follows a January-December financial year calendar.

ABB India has reported bagging orders worth ₹3,147 crore in the last quarter of CY2023, registering a 35% YoY growth, while the order backlog too increased by 30% YoY in the December 2023 quarter to ₹8,404 crore.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) of ₹417.70 crore in the fourth quarter rose by 14.7% from the same period last year.

ABB India’s Board of Directors also recommended a final dividend of ₹23.8 per equity share.

Commenting on results, the Managing Director of ABB India, Sanjeev Sharma, said that the company’s broad-based growth in Q4 was led by the deepening engagement into diverse market segments and portfolio expansion and localisation for the Indian market.

“We are grateful for the enduring confidence our customers place in our value adding Electrification and Automation products, solutions, and services. Our focus on superior margins and a strategic mix continues to aid in robust cash generation,” Sharma said.

Further, the company’s strong traction in large orders in the December quarter was mostly led by the contributions of segments including metals, railways, cement, specialty chemicals, data centres and construction machinery.

Shares of ABB India were trading 9.03% higher at ₹4,933 per piece on NSE at 11:25 AM.