ABB India Limited , a leading technology company specializing in electrification and automation, has released its financial results for the third quarter and nine months ended September 30, revealing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth Amid Challenging Environment

For the quarter ended September 30, ABB India reported a total revenue from operations of ₹3,310.72 crore, marking a significant increase of 13.7% compared to ₹2,912.16 crore in the same quarter last year. This growth was primarily driven by strong execution of the company's order backlog.

Profit Margins Under Pressure

Despite the revenue growth, the company's profitability faced headwinds. Profit after tax for Q3 stood at ₹409.04 crore, down from ₹440.45 crore in the same quarter of the previous year, representing a 7.1% year-on-year decline. The company attributed this decrease to rising material costs, mainly due to revenue mix and reliance on imports to support delivery commitments in the wake of Quality Control Order (QCO) compliance.

Nine-Month Performance

For the nine months ended September 30, ABB India's revenue from operations reached ₹9,645.72 crore, up from ₹8,823.38 crore in the corresponding period of the previous year. However, profit for the nine-month period declined to ₹1,235.41 crore from ₹1,343.23 crore in the previous year.

Segment-wise Performance

ABB India's performance varied across its business segments:

The Robotics & Discrete Automation segment showed the highest growth, while Process Automation remained relatively flat.

Order Book and Future Outlook

ABB India maintained a strong order backlog of ₹9,895 crore as of September 30, providing good revenue visibility for the coming quarters. The company reported that base orders were up 13% year-on-year, although overall orders decreased by 3% due to the timing of large orders.

Management Commentary

Sanjeev Sharma, Managing Director of ABB India, commented on the results: "We have had another quarter where we continue to build our overall performance. Base order growth and revenue expansion led the way in driving momentum during the quarter. I am proud of the team that continues to nurture our wide portfolio to serve customers in 23 market segments and continue to weather all cyclical swings in a year that has been cautious on the customers' side."

Sustainability Initiatives

ABB India reported progress on its sustainability targets, with year-to-date greenhouse gas emission reduction (from a 2019 baseline) down by 87.05%. Additionally, all Motion factories have been certified as zero waste to landfill.

Conclusion

While ABB India demonstrates strong revenue growth and a robust order book, the company faces challenges in maintaining profit margins due to rising material costs and market dynamics. The company's diverse portfolio and focus on sustainability may provide resilience as it navigates the evolving industrial landscape in India.

Investors and stakeholders will be watching closely to see how ABB India addresses these challenges and capitalizes on growth opportunities in the coming quarters.

ABB India , a leader in electrification and automation technology, has taken a significant step towards enhancing its local manufacturing capabilities. The company has launched a new production line for energy-efficient drives at its Peenya factory in Bengaluru, marking a notable expansion in its domestic production footprint.

Expansion Highlights

• Capacity Increase: The new line has boosted ABB India's local production capacity for variable speed drives (VSDs) by approximately 25%.
• Support for 'Atmanirbhar Bharat': This expansion aligns with the government's 'Atmanirbhar Bharat' and 'Make in India' initiatives, reinforcing ABB's commitment to local manufacturing.
• Industry 4.0 Standards: The new production line incorporates cutting-edge automation technology, enhancing productivity, safety, and quality in operations.

Key Features of the New Production Line

Impact on Production and Delivery

• Lead Time Reduction: Expected to cut lead times by up to 40%, improving delivery efficiency.
• Customization: Enhanced capability to deliver 'made-to-order' drives for specific industrial needs.
• Target Industries: Buildings, data centers, water, cement, and metals sectors.

Strategic Importance

AR Madhusudan, Business Line Manager, Drive Products at ABB India, emphasized the significance of this expansion: "As we mark two decades of drives production in India, this expansion reinforces our strong commitment to advancing local production capabilities and delivering energy-efficient technologies for India's industries."

The new production line not only supports ABB India's growth strategy but also aligns with India's sustainability goals. By enhancing local production of energy-efficient drives, ABB is positioning itself to play a crucial role in improving energy efficiency across various Indian industries.

This expansion comes as ABB celebrates 50 years of innovation in variable speed drives globally and two decades of drives production excellence in India. The company's drives have been integral to numerous nation-building projects, from metros and airports to pharmaceutical and metal industries.

As India continues to focus on sustainable industrial growth, ABB's enhanced local manufacturing capabilities are set to contribute significantly to the country's industrial efficiency and environmental goals.