Engineering firm ABB India posts 88% rise in Q1 profit on robust demand

ABB India

10/05/2024 15:34

BENGALURU, May 10 (Reuters) - Engineering services firm
ABB India  ABB.NS  on Friday reported an about 88% jump in its
first-quarter profit, surpassing analysts' expectations, backed
by higher demand at its biggest segment.
    Profit at the domestic arm of Switzerland's ABB  ABBN.S 
rose to 4.59 billion Indian rupees ($54.97 million) in the three
months ended March 31, from 2.45 billion rupees a year earlier.
    Analysts on an average expected profit of 3.29 billion
rupees, according to LSEG data.
    Indian capital goods companies are expected to see healthy
revenue growth in the March quarter, led by industrial demand
and strong order book, according to analysts.
    ABB India said its total orders surged to 36.07 billion
rupees — the highest for the first quarter in the last five
years.
    "The increased demand for technologically superior
solutions, coupled with the government's capital expenditure
focus on new-age themes such as energy efficiency,
decarbonization and digitalization has significantly driven our
order momentum," ABB India said.
    Revenue from the company's electrification segment, its
largest with a contribution of 41.2% to overall revenue, rose
nearly 30%. Its second-biggest segment, motion, grew 4.2%.
    ABB India's total revenue from operations rose about 28% to
30.80 billion rupees, while analysts expected 28.62 billion
rupees.
    Shares of ABB India closed 2.8% higher ahead of the results.
The stock has climbed 36.1% in the January-March quarter.
    Shares of parent ABB scaled a record high last month, after
the company posted better-than-expected quarterly profit and
signalled faster growth in the coming months.
    Rival Thermax  THMX.NS  also reported higher fourth-quarter
profit on Friday, while Siemens  SIEM.NS  is expected to post
its results on Tuesday.


($1 = 83.5006 Indian rupees)

 (Reporting by Rama Venkat and Yagnoseni Das in Bengaluru;
Editing by Shilpi Majumdar)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;
 +91 8095218099;))