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Informist, Friday, May 8, 2026

 

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--ABB India: See good revenue growth ahead from strong order backlog 
--CONTEXT: Comments by ABB India management in post-earnings analyst concall 
--ABB India: Jan-Mar revenue growth affected by West Asia situation impact 
--ABB India: Q4 materials cost up on higher commodity inflation 
--ABB India:Q4 motion segment profit growth subdued on higher materials cost 
--ABB India: Co can mitigate forex, material volatility with volume growth 
--ABB India: There is competition intensity in certain market segments 
--ABB India:There is some market disturbance impact for co due to W Asia war 

 

By Astha Oriel and Rajesh Gajra 

 

NEW DELHI/MUMBAI – ABB India Ltd. is seeing good demand globally as well as in India for its products and solutions in the data centres business segment, the top management told analysts on a call after the company announced its financial results for the March quarter. ABB India's offerings cover installation and long-term service and support, a top official said.

 

To a question on ABB India's plans for expected multi-fold increase in India's data centre capacity to 10 gigawatts in 4-5 years, a top official said the company was making "a lot of investments" on the segment and this was not limited to the hyperscalers. He said the company is already well-positioned to capture the data centre market. 

 

"In fact, we are building up the capacity to meet their demand," he said. ABB India is also matching capacities as per requirements of hyperscaler clients who "have already signed their contracts with us", the official said. The company operates in the data centre segment through its larger electrification business segment.

 

The management said the company's March quarter revenue saw an impact from the West Asia crisis. "There has been a bit of an unprecedented headwind, and due to which we could see profitability going down, and revenues likely could have been a bit more higher compared to what we are doing at this point of time," it said. For the March quarter, the company reported a 276% on-year and 312% on-quarter increase in net profit to INR 17.84 billion. The power equipment manufacturer's revenue for the reporting quarter was up nearly 6% on year, but declined nearly 6% on quarter to INR 31.62 billion.

 

The management said the March quarter material costs were up due to an increase in commodity prices. The profit of its motion business declined by over 39% on year to INR 1.48 billion due to the higher costs of materials. The company's financial year begins Jan. 1. For the March quarter, its cost of materials consumed grew nearly 11% on year to INR 16.44 billion.

 

The company, however, expects to mitigate the risk of foreign exchange fluctuations and commodity volatility with volume growth. "We should be able to mitigate this risk for forex and commodity and volatility at this point of time, with the volume which we see. We need to work more on how the market develops, in terms of accepting more price increases to the market," the management said. The company sees competition intensity in certain market segments, it added.

 

Amidst the West Asia crisis, the company sees some impact from market disturbances. Despite the West Asia crisis, it sees good revenue growth on the back of a strong order backlog. As of Mar. 31, the company has an order backlog of INR 110.94 billion, up 17% on year. "If you see the order momentum, it is coming across core and emerging sectors, namely in transport, building infrastructure, data centre, food and beverage, process industries, and renewable, and which gives us good visibility going forward because the customer interest and the order pipeline formation is robust at the moment. And given our backlog, we see very good revenue execution going forward," the management said.

 

The company announced its results after market hours Friday. Its shares ended at INR 7,012.50 on the National Stock Exchange, down 2.4% from Thursday.  End

 

Edited by Rajeev Pai

 

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