News: ABB reported good operational performance in Q4CY23 as revenues for the quarter grew by 14% YoY at Rs 2757 crore. Order inflows grew by 35% to Rs 3147 crore. The order backlog was also up 30% at Rs 8404 crore. Better execution and operating leverage led to margin expansion to 14.8% vs. 12.4% in Q4CY22. PAT grew by 14% YoY to Rs 345 crore. From a segmental perspective electrification, process automation and robotics perm goes well in terms of revenue and order booking.
Views: Strong backlog growth of 30% will ensure good growth viability for ABB in the medium term. The ongoing capex cycle across Industries will put ABB in a sweet spot given the product portfolio it commands. However valuations continue to remain rich. Any sharp correction in the stock should be bought into from a 3-5 year perspective.
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