ABB India at a crossroads: Profits soar but stock slump hints at trouble

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Subscribe to enjoy similar stories. ABB India Ltd ended another year with strong earnings growth but the stock’s sharp decline this year points to another story. The engineering conglomerate’s Ebitda grew 58% year-on-year in the December quarter aided by improved revenue mix, price advantage, and better economies of scale.

Its electrification and process automation segments saw Ebit growth of 65% and 51%, respectively. However, ABB India’s growth outlook is subdued and its order inflow slowed significantly in the December quarter to ₹2,695 crore, lower than its Rs3,000-3,500 crore range in the seven quarters prior. Its order inflow fell 14% year-on-year in the fourth quarter, sharply dragging ABB India’s 2024 inflow growth to 6% from 23% in 2023.

The company, which is majority owned by Swiss conglomerate ABB Ltd, follows a January-December financial year. ABB India’s large orders shrank dramatically in the December quarter. Its domestic order inflow fell 19%.

However, exports orders, including from group companies, were up 34%, offering some support, and accounted for a 14% share of the company’s total orders in 2024. Of ABB India’s four segments, order inflow improved only in robotics and discrete automation. However, this segment accounted for less than 4% of the company’s 2024 revenue share and cannot move the needle much.