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ABB (CMP: Rs 8100, Market Cap: RS 172000 crore) Record quarter

ICICIdirect Research 09 Aug 2024 DISCLAIMER
  • 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.
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