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 (BSE: 500002, NSE: ABB) has announced a groundbreaking strategic partnership with THINK Gas Pvt. Ltd., aimed at revolutionizing the City Gas Distribution (CGD) sector in India. This collaboration marks a significant step towards digitalization and automation in the natural gas distribution landscape.

Transforming Gas Distribution with Digital Innovation

The partnership centers around the successful implementation of ABB's cutting-edge ABB Ability™ SCADAvantage solution for THINK Gas. This advanced system enables end-to-end automation and digitalization of THINK Gas's extensive CGD network, which spans across ten Indian states.

Impressive Network Coverage

THINK Gas's network encompasses 19 Geographical Areas (GAs) in Andhra Pradesh, Bihar, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, and Tamil Nadu. The infrastructure includes:

• Over 500 CNG stations
• Approximately 550,000 registered DPNG connections
• Around 17,000 inch-km of steel pipeline connecting industrial and commercial establishments

Centralized Operations and Real-time Visibility

ABB's cloud-based automation platform has enabled THINK Gas to centralize its operations and gain real-time visibility of its CGD networks from a control room in Chennai. This centralization brings numerous benefits:

• Efficient energy distribution from source to end-users
• Centralized price management and billing
• Improved gas planning and reconciliation
• Enhanced pressure and flow control
• Increased data accuracy and integrity

Significant Cost Savings and Operational Improvements

The implementation of ABB's automation system has yielded impressive results for THINK Gas:

• Up to 60% reduction in gas distribution operational costs
• Significant optimization of manpower requirements
• Improved process times and enhanced responsiveness
• Greater control of operational parameters across the CGD network

Leadership Perspectives

Chiradeep Datta, Chief Operating Officer of THINK Gas, expressed pride in the partnership, stating, "We are proud to partner with ABB India on this transformative project, ensuring a secure energy supply for millions of Indians. By digitalizing and centralizing our natural gas distribution networks, we have significantly boosted operational efficiency, optimized manpower requirement and leveraged real-time data to make better decisions."

G Balaji, SVP of the Energy Industries division at ABB India, highlighted the importance of this collaboration in the context of India's energy initiatives. He noted, "As India scales up its energy initiatives in step with the increasing demand, ABB technology solutions like SCADAvantage are set to play an important role in achieving operational excellence across the country's energy value chain."

Alignment with India's Energy Goals

This partnership aligns with India's commitment to increase natural gas usage to 15% of its energy mix by 2030. The expansion of CGD infrastructure supports the supply of Piped Natural Gas to households, industrial and commercial units, as well as Compressed Natural Gas for vehicles.

As ABB India and THINK Gas embark on this strategic partnership, the Indian CGD sector is poised for significant advancements in efficiency, sustainability, and operational excellence. This collaboration exemplifies the power of digital innovation in transforming critical infrastructure and contributing to India's evolving energy landscape.