ABB India shares surge over 8% after Q1 net profit jumps 87%
ABB India in Monday’s trade jumped 8.5% on BSE to its new 52-week high of Rs 7,792.40 after the company reported an 87% jump in net profit at Rs 460 crore in the March 2024 quarter on the back of higher revenues.
During the quarter, consolidated revenues came in at Rs 3,080 crore, up 28% from Rs 2,411 crore posted in the year-ago period.
ABB India displayed a strong growth momentum in orders with a healthy mix of short & long-cycle opportunities. The order backlog also showed a healthy step-up of 25% from Q1 2023.
ABB India’s stock has gained 6.8% in the last 6 months on BSE while it has increased 16% in the last one year.
“ABB India’s 1QCY24 results were much ahead of our estimates, driven largely by strong improvement in margin. Our thesis, as highlighted in our latest AR2023 update (link), of margin improvement is playing out quite well and we expect the company to keep benefiting from its pricing advantage, operating leverage gain, improving product mix toward higher-margin segments, and a wide product portfolio,” said a Motilal Oswal report.
ABB’s total orders surged to Rs 3,607 crore, the highest for the first quarter in the last five years. The quarterly growth was led by electrification & process automation business areas, which more than offset the temporary customer decisions sluggishness in motion and robotics & discrete automation business areas. From the market point of view, the strongest growth was witnessed in data centers, smart buildings, expansion in tier 2 & 3 cities, energy and logistics.
