ABB India shares surged over 3% in early trade following the announcement of its Q2CY24 results, which largely exceeded market expectations. The company’s net profit for the June quarter rose by 50% year-on-year to ₹443.5 crore, driven by higher revenue and improved margins.
Key Financial Highlights
- Net Profit: ₹443.5 crore, up 50% YoY
- Total Income: ₹2,830.9 crore, a 12.8% increase YoY
- Market Expectations: Analysts had anticipated a 22% YoY increase in net revenue to ₹3,070 crore and a net profit of ₹455.8 crore.
- EBITDA Margin: Expanded by 526 basis points (bps) YoY
Dividend and Investment Plans
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- Interim Dividend: The board approved an interim dividend of ₹10.66 per share, payable on or before September 5, 2024.
- Capital Investment: A ₹85 crore investment was approved for process automation and electrification at a site near Bengaluru.
Operational Insights
- Material Costs: Continued to remain below 60% of revenue, supported by capacity leverage, cost optimization, and strategic measures such as localization.
- Order Book: Total orders reached ₹3,435 crore, up 12.8% YoY. The company’s order book stands strong at ₹9,517 crore, a 23.2% increase YoY, providing solid revenue visibility for upcoming quarters.
Market Reaction
As of 10:05 AM, ABB India shares were trading 3.28% higher at ₹8,202.50, reflecting investor confidence in the company’s performance and growth outlook.
