ABB India posts record high revenue and profitability growth in Q4 2024

ABB India Limited has reported an exceptional financial performance for the fourth quarter and full calendar year of 2024, achieving record high revenue and substantial profitability growth. Despite a decline in total orders due to the absence of one-time large deals from the previous year, the company posted its highest-ever Q4 revenue in five years. A strong focus on operational efficiencies, increased demand across key industries, and a strong order backlog supported this impressive performance.

The company’s revenue for Q4 2024 reached INR 3,365 crore, marking a sharp increase from INR 2,757 crore in Q4 2023. Over the full year, ABB India achieved its highest-ever revenue of INR 12,188 crore, reflecting its ability to capture growth opportunities in multiple segments. The company’s profit before tax (PBT) surged by 55% year-over-year (Y-o-Y) to INR 705 crore, while profit after tax (PAT) rose by 54% to INR 532 crore.

What Drove ABB India’s Profitability Growth in 2024?

ABB India’s profitability growth was fueled by improved price realization, operational efficiencies, and an optimal mix of revenue streams across various segments. The company’s return on capital employed (ROCE) hit an all-time high of 26.5%, underscoring its ability to generate strong returns on investment. The electrification segment led revenue growth, driven by high demand from data centers, infrastructure projects, and export markets. Robotics and discrete automation saw significant expansion, benefiting from the rising adoption of automation solutions in electronics and automotive industries.

The Motion segment contributed significantly to revenue growth through increased demand for traction drives and converters. Meanwhile, Process Automation remained stable, bolstered by ongoing projects in metals, energy, and chemicals. The diversification of ABB India’s customer base across 23 market segments played a crucial role in maintaining consistent revenue and profitability growth.

How Has ABB India’s Order Backlog Strengthened Future Growth?

ABB India secured total orders worth INR 2,695 crore in Q4 2024, bringing full-year orders to INR 13,079 crore, the highest in the company’s history. Large orders grew by 20% Y-o-Y, reinforcing the company’s strong order backlog, which reached INR 9,380 crore by the end of the year. This backlog ensures revenue visibility for the coming quarters and aligns with ABB India’s long-term growth strategy.

Orders in metals and mining, energy and chemicals, infrastructure, food and beverage, electronics, and renewables contributed significantly to growth. Robotics and automation solutions witnessed strong demand, with major contracts secured from an electronics giant and an Indian automotive leader. The company also executed automation projects for electrification in the metals manufacturing sector, distribution solutions for a large engineering firm, and power distribution systems for data centers.

Over the past five years, ABB India has maintained a compound annual growth rate (CAGR) of 22% in orders, underscoring its resilience in an evolving market landscape.

How Has ABB India Strengthened Its Financial Position?

ABB India’s financial health remains robust, with cash reserves of INR 5,390 crore at the end of Q4 2024. The company’s net working capital increased, primarily due to higher inventory levels maintained for scheduled deliveries. This strategic inventory build-up is expected to enhance execution efficiency and ensure timely project completion.

The company’s earnings per share (EPS) for Q4 2024 stood at INR 25.10, up from INR 16.29 in the same period last year, reflecting sustained profitability growth. For the full year, EPS climbed to INR 88.46, compared to INR 58.90 in 2023. The strong order backlog and disciplined execution of projects have contributed to this steady financial performance.

How Is ABB India Rewarding Shareholders?

ABB India’s board has proposed a final dividend of INR 33.50 per share, in addition to the interim dividend of INR 10.66 per share declared earlier in 2024. This brings the total dividend payout to a 51% increase compared to CY2023, highlighting the company’s confidence in its future profitability and cash flow generation.

What Are ABB India’s Key Sustainability Achievements?

ABB India continues to focus on sustainability, achieving an 86% reduction in greenhouse gas (GHG) emissions compared to its 2019 baseline. Additionally, 50% of its manufacturing facilities are now certified as water positive and zero waste to landfill. The company has also made significant progress in its supplier ESG awareness initiatives, with 40.5% of its suppliers enrolled in the sustainability program, marking a 33% increase from 2023.

ABB India’s commitment to sustainability extends to its green supply chain initiatives, where suppliers are actively encouraged to adopt environmentally friendly practices. The company successfully underwent an independent assurance exercise to validate its ESG reporting under Business Responsibility and Sustainability Reporting (BRSR) principles.

What Is ABB India’s Outlook for 2025?

ABB India is strategically positioned to leverage growth opportunities in renewable energy, data centers, industrial automation, and infrastructure development. With its “local-for-local” strategy, the company aims to enhance its manufacturing footprint and cater to domestic market demands effectively.

The company is expected to benefit from government-led infrastructure investments, particularly in mega projects, smart grids, and sustainable energy solutions. ABB India is also well-placed in sectors such as pharmaceuticals, power distribution, water management, electronics, and digitalization, which are projected to receive increased investments in 2025.

Despite potential global economic uncertainties, ABB India remains committed to maintaining profitability growth, expanding its technological capabilities, and sustaining its leadership in the automation and electrification industries. Its strong order backlog, diversified market presence, and continued focus on operational efficiencies position it for long-term success.