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ABB (CMP: Rs 8100, Market Cap: RS 172000 crore) Record quarter
- ABB reported strong set of Q2CY24 results wherein company performed well across all parameters. Revenues grew by 13% YoY to Rs 2831 crore. The growth in revenues was mainly driven by all the segments electrification division which grew by 11% YoY and process automation, up 18% YoY. Order inflows grew by 13% YoY at Rs 3435 crore, which mainly came in from the emerging (Data Centres, renewables, electronics, metro) and core sectors as well. Order backlog grew by 23% YoY at Rs 9517 crore. Strong execution and operating leverage led to EBITDA coming in at 19.2% vs. 18.3% in Q1CY24 and 13.9% Q2CY23 YoY. Consequently, PAT came in at Rs 443 crore, up 50% YoY.
- Q2CY24 turned out to be record quarters for ABB and given the growth in backlog and capex environment, we expect the company to report strong performance over the next 3-5 years. Any significant correction in the stock should be used as a buying opportunity.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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