ABB India Limited , a leading technology company, has announced its financial results for the first quarter, showcasing revenue growth but facing challenges in profitability metrics.

Revenue Growth

The company reported a total revenue from operations of ₹3,175.44 crore for Q1, marking a 12.2% increase from ₹2,830.86 crore in the corresponding quarter of the previous year. This growth demonstrates ABB India's strong market position and ability to capitalize on demand despite challenging economic conditions.

Profit Performance

ABB India reported Q1 EBITDA of ₹413.00 crore compared to ₹541.00 crore in the same period last year. The company's EBITDA margin decreased to 13.04% from 19.14% year-over-year. Net profit for the quarter stood at ₹352.00 crore, down from ₹442.00 crore in the previous year's corresponding quarter.

Currency Impact and Customer Claim

The company's performance was significantly impacted by foreign currency fluctuation losses of ₹56.50 crore due to the depreciation of the Indian Rupee against the Euro and Swiss Francs. Additionally, ABB India received a customer claim of ₹39.50 crore related to Electrification business projects, which was adjusted against revenue.

Segment Performance

The Robotics & Discrete Automation segment showed significant growth, up from ₹84.26 crore in the same quarter of the previous year.

Dividend Declaration

The Board of Directors declared an interim dividend of ₹9.77 per equity share, demonstrating confidence in the company's financial stability and commitment to shareholder returns.

Strategic Developments

Following the parent company's decision to spin off its Robotics division, ABB India's Board approved the appointment of advisors for valuation of the Robotics & Discrete Automation segment. This move aligns with the global strategy and may lead to potential restructuring in the future.

Outlook

Despite the challenges posed by currency fluctuations and specific customer claims, ABB India's overall revenue growth and strategic initiatives position the company for continued success in the technology and automation sectors. However, the decline in profitability metrics suggests that the company may need to focus on cost management and operational efficiency in the coming quarters.

Note: All financial figures are in Indian Rupees (₹) and crore.

ABB India Limited has announced a substantial interim dividend and approved the incorporation of a wholly owned subsidiary for its robotics business, demonstrating strong financial performance and strategic restructuring.

Dividend Details

The Board of Directors of ABB India, in a meeting held on August 2, declared an interim dividend of Rs 9.77 per share, representing a remarkable 488.50% of the face value of Rs 2 per equity share. This dividend will be applicable to 21,19,08,375 equity shares of the company.

Key Dates

Shareholders whose names appear on the company's Register of Members or in the records of the Depositories as beneficial owners on the record date will be eligible for this dividend.

Financial Implications

The total dividend payout for ABB India will amount to approximately Rs 207.03 crore, calculated based on the number of outstanding shares and the declared dividend per share. This significant payout underscores the company's robust financial position and its commitment to rewarding shareholders.

Robotics Business Restructuring

In the same board meeting, ABB India's Board of Directors approved the incorporation of a wholly owned subsidiary to potentially house the company's robotics business as a separate legal entity. This decision aligns with ABB Group's global plan to spin off its robotics division. The board also approved the appointment of registered valuers to assess the company's robotics business value.

The proposed subsidiary will have an authorized capital of Rs 1 lakh and will operate in the robotics industry. The company clarified that no decision has been made regarding divestment of the robotics business to the parent group or third parties, and any such decision would require corporate and regulatory approvals, independent valuation assessments, and other legal processes.

Corporate Governance

The board meeting that decided on the interim dividend and subsidiary incorporation commenced at 2:15 PM and concluded at 3:45 PM on August 2. This prompt disclosure aligns with the company's commitment to transparency and compliance with SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations.

About ABB India Limited

ABB India Limited, a subsidiary of ABB Group, is a technology leader in electrification products, robotics and motion, industrial automation and power grids. The company has its registered and corporate office in Bengaluru, Karnataka, and continues to play a significant role in India's manufacturing and energy sectors.

Investors and stakeholders can find more information about these announcements and other corporate updates on the company's official website.