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Informist, Monday, May 12, 2025

 

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--ABB India: Order backlog giving clear revenue visibility for 2025 
--CONTEXT:ABB India order backlog at INR 99.58 bln as on Mar. 31, up 11% YoY 
--CONTEXT: ABB India mgmt's comments in post-earnings analyst call 
--ABB India: Received large orders worth INR 2 bln in Jan-Mar 
--ABB India: Cash balance as of Mar. 31 at INR 57.6 bln 
--ABB India:Orders from tier-2, tier-3 cities improved significantly Jan-Mar
--ABB India: See sluggishness in large-order pipeline for now 
--ABB India: Have expanded our products portfolio in electrification, motion 
--ABB India: Demand for localisation of pdts is increasing 
--ABB India: Geopolitical events impacted initial order flows in Apr-Jun 
--ABB India: Export orders up 40% YoY in Jan-Mar 
--ABB India: Did quite well in exports market, see no dampening effect 
--ABB India: Actively exploring inorganic opportunities 
--ABB India: Order volume to improve going forward
 

 

By Narayan Krishna and Vaishali Tyagi

 

HYDERABAD/MUMBAI – Electrical engineering and process automation company ABB India Ltd. on Monday said that despite challenges like ongoing geopolitical events and the risk from slow new order accruals, the current order backlog is giving a clear visibility of growth in revenues and profit for 2025.

The Bengaluru-based company reported an order backlog of INR 99.58 billion as of Mar. 31. The company has booked large orders worth over INR 2 billion during Jan-Mar, the management said in a post-earnings analyst call. 

 

The Indian subsidiary of the Swiss electrification and automation major ABB had reported its March quarter earnings post market hours Friday. The company posted subdued earnings, with its net profit rising over 3% on-year to INR 4.75 billion in the latest quarter, the slowest growth in 18 quarters. This figure also fell short of analysts' expectations of INR 4.95 billion net profit. For the March quarter, the company's revenue rose 2.6% on year to INR 31.60 billion. Analysts had expected the company to report a revenue of INR 33.66 billion.

 

ABB India's management said on Monday that there is a sluggishness in the large-order pipeline as several customers are unable to proceed with decision-making. However, order inflows in the base business are improving, the management said. Geopolitical events like the ongoing conflict between Russia and Ukraine and recent developments at India's border had an impact on order inflows in the initial part of the Apr-Jun quarter. However, the company expects order volumes to improve going forward.

 

ABB India provides industrial engineering, electrification, process automation, and robotics services across industries. ABB India said the company is witnessing significant order inflows from tier-II and tier-III cities in the country as growth is shifting to these cities. The demand for localisation of products is increasing, particularly in the fast-moving electrical goods segment.

 

The company said it is expanding its product portfolio in the electrification and motion segments as per the growing local demand. The company is also doing well on the exports front in Jan-Mar with no dampening effect seen as of now, the management said, adding that export orders rose 40% on year in Jan-Mar.

 

Responding to questions on the company's cash reserves, ABB India's management said it is expanding the capacities organically to meet the market demand and also actively exploring inorganic growth opportunities, though the company is not in a rush to do so.

 

The management said it will wait for the right opportunity to grow organically at the right price, which would unlock more value for the shareholders. As of Mar. 31, ABB India has a cash balance of INR 57.6 billion.

 

At 1222 IST, shares of the company traded at INR 5,510.50, up 1.3%.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

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