- 10 Aug 2022
- ICICIdirect Research
ABB INDIA REPORTS ROBUST Q1FY23 NUMBERS
ABB - 7771 Change: 86.15 (1.12 %)News: ABB India reported a strong performance and beat our estimates in all fronts. ABB reported revenue at Rs 2052.5 crore (vs our estimate of Rs 1741.3 crore), which grew 44% YoY on strong order execution. EBITDA came in at Rs 198.8 crore (vs. our estimate of Rs 135.8 crore) with EBITDA margin of 9.7% (our estimate was 7.8%) (Vs. 6.6% in Q2CY21), while gross margins improved by 290 bps to 39% YoY. Adjusted PAT came in at Rs 147.1 crore (vs. our estimate of Rs 101.1 crore), up 109.3% YoY on low base. Order inflows came pretty strong at Rs 2767 crore, up 64% YoY, registering a healthy growth in all business segments.
View: ABB reported strong growth in all key market segments. Robotics & motion segment grew 49.6% on YoY basis to Rs 882 crore; Electrification segment grew 45.3% YoY to Rs 838 crore while industrial automation segment revenue grew 38.5% YoY to Rs 370 crore. Robotics & motion, electrification, industrial automation segments contributed ~42.9%, ~40.8%, 18%, respectively. Robotics & motion reported EBIT Margin of 9.1% (vs.. 10.1% in Q2CY21), Electrification EBIT margin was at 11.5% (vs. 6.8% in Q2CY21) while Industrial Automation EBIT margin saw improvement at 10.8% Vs 6%, YoY. Going Forward, ABB will continue to focus on recovery of growth industries amid revival of long due capex cycle, while it continues to focus on order win and seamless execution across projects while gaining operation efficiencies.
Impact: Positive.