ABB India Limited has received an ESG (Environmental, Social, and Governance) rating of 76 for FY2025 from NSE Sustainability Ratings & Analytics Ltd., as disclosed in a regulatory filing. The rating places the company in the 'Leader' category, reflecting strong ESG performance across multiple parameters.

ESG Rating Breakdown

The comprehensive ESG assessment evaluated ABB India across three key pillars, with the company demonstrating varied performance across different areas:

Environmental Performance Highlights

ABB India's Environment score of 80 was driven by several positive factors. The company's greenhouse gas emissions from direct operations and energy consumption remained below industry averages. Energy intensity of operations was below benchmarks with a 7.00% decrease compared to the previous year, while renewable energy usage surpassed industry averages. Water intensity performance showed improvement with a 13.00% decrease year-over-year.

However, some challenges were noted, including Scope 3 emissions being higher than standard practices despite a 16.00% decrease from the previous year, and waste intensity increasing by 30.00% compared to the previous year, though waste recycling and recovery rates remained high when compared with peers.

Social and Governance Assessment

The Social score of 73 reflected mixed performance across various parameters:

The Governance score of 75 was supported by strong board composition and committee structures. Key strengths included a stronger presence of independent directors than minimum regulatory requirements, fulfillment of women director requirements, and better-than-required independent director representation across various committees including Nomination and Remuneration, Audit, Risk Management, and CSR committees.

Core ESG Rating

In addition to the overall ESG rating, ABB India achieved a Core ESG Rating of 68 for FY2025, which focuses on third-party assured or audited data from BRSR Core disclosures:

Independent Assessment Clarification

ABB India clarified in its disclosure that the company did not engage NSE Sustainability Ratings & Analytics Ltd. for this rating assessment. The ESG report was independently prepared by the rating agency based on information available in the public domain, including annual reports, ESG reports, BRSR reports, company websites, news, and stock exchange filings.

The rating assessment employed a comprehensive methodology that considers materiality-based weightings, industry-specific benchmarks, and evaluation across five criteria: Performance, Compliance, Policy, Initiatives, and Best Practices. The rating scale ranges from 0 to 100, with companies categorized from 'Lagging' (bottom 5%) to 'Leader' (top 10%), making ABB India's 'Leader' classification a significant achievement in ESG performance.

ABB India Limited , a leading technology company, has reported a 14% year-on-year revenue growth in the third quarter, despite facing margin pressures and market challenges. The company's performance reflects a mixed bag of growth in base orders and declining overall orders due to the absence of large contracts.

Key Financial Highlights

• Revenue growth: 14% year-on-year
• Base order growth: 13% year-on-year
• Overall orders: Declined 3% due to absence of large contracts
• Order backlog: Maintained at Rs. 9,895.00 crores
• Profitability: Declined 7% year-on-year, but improved 16% quarter-on-quarter

Market Dynamics and Challenges

ABB India faced several challenges during the quarter, including:

1. Margin pressures from Quality Control Order (QCO) compliance requirements
2. Increased competition in various market segments
3. Forex volatility impacting profitability
4. Delayed decision-making on large projects and expansions

Segment Performance

Electrification

• Continued growth in base orders
• Revenue growth across all divisions
• Margin impact due to mix changes, competition, and QCO compliance

Motion

• Strong order intake with good base order growth
• 9% execution growth
• Margin pressures similar to Electrification segment

Process Automation

• Stagnant order intake due to delayed decisions on larger expansions
• Consistent profitability maintained
• Less impacted by QCO due to multiple vendor sourcing options

Robotics

• Good order intake of Rs. 203.00 crores
• Stronger backlog
• Profitability muted due to lower service revenues

Market Outlook

ABB India remains cautiously optimistic about future growth prospects:

• Renewable energy sector, including battery energy storage systems (BESS) and green hydrogen, shows promise
• Rail and metro sectors continue to expand
• Data center market sees growth, particularly in colocation centers
• Revival in cement, steel, and oil & gas sectors

Strategic Focus

1. Continued expansion of portfolio with premium products
2. Focus on sustainability initiatives
3. Exploring inorganic growth opportunities globally and locally
4. Navigating QCO compliance challenges while maintaining customer serviceability

Conclusion

While ABB India faces short-term challenges due to market dynamics and regulatory requirements, the company's diverse portfolio and focus on emerging sectors position it well for future growth. The management remains committed to navigating these challenges while capitalizing on opportunities in high-growth segments.

Note: All financial figures are in Indian Rupees (INR).