- 14 Nov 2022
- ICICIdirect Research
ABB India posts strong Q2FY23 numbers
ABB - 7851 Change: 227.45 (2.98 %)News:
In Q3CY22, ABB India reported a strong performance and beat our estimates on all fronts. Revenue was at Rs 2119.7 crore (vs. our estimate of Rs 2189.3 crore), up 19.2% YoY on strong order execution. Robotics & motion segment grew 23% YoY to Rs 939.8 crore; electrification segment grew 27.1% YoY to Rs 881 crore while industrial automation segment revenue grew 3% YoY to Rs 350 crore. Robotics & motion, electrification, industrial automation segments contributed ~44%, ~42%, 17%, respectively. EBITDA came in at Rs 211 crore (vs. our estimate of Rs 216.7 crore) with EBITDA margin of 10% (our estimate was 9.9%) (vs. 9.5% in Q3CY21) while gross margins were flat at 37.9% YoY. Adjusted PAT was at Rs 168.7 crore (vs. our estimate of Rs 159.7 crore), up 40.7% YoY aided by other income. Also a one-time extraordinary gain (Rs 46 crore) on the final divestment of the turbo charger business. Order inflows came in strong at Rs 2634 crore, grew by 38% YoY basis, registered a decent growth in all business segment. The order backlog as of Q3CY22 stood at Rs 6519 crore, up 37% YoY
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ABB will continue to focus on recovery of growth industries like datacentre, renewables, water & waste water, warehousing, electronics, food & beverages and pharma and other large core industries amid revival of long due capex cycle. It continues to focus on order win and seamless execution across projects while gaining operation efficiencies
Impact:
Positive