ABB India’s Q4FY25 net profit surges 56% to ₹528.4 crore, revenue up 22%. Board recommends ₹33.50 dividend. Shares gain despite earlier decline. Details inside.
ABB India Ltd announced its financial results on Monday, February 17, showcasing a significant surge in net profit for the fourth quarter that ended December 31, 2024. The company reported a 56% year-on-year (YoY) increase, with net profit reaching ₹528.4 crore, compared to ₹338.7 crore in Q4FY24.
The company’s revenue from operations also saw substantial growth, rising by 22% to ₹3,364.9 crore, up from ₹2,757.5 crore in the corresponding period of the previous year. At the operating level, EBITDA (earnings before interest, tax, depreciation, and amortisation) experienced a notable increase of 57.6% YoY, reaching ₹657.3 crore in Q4FY25, compared to ₹417.2 crore. The EBITDA margin expanded to 19.5% from 15.1% year-on-year.
Dividend Announcement
The board of directors recommended a final dividend of ₹33.50 per share, (1,675%) on 21,19,08,375 equity shares of the face value of ₹2 each fully paid up for the financial year ended December 31, 2024, subject to shareholders’ approval at the ensuing annual general meeting.
Market Reaction
The results were announced after market hours. On the BSE, shares of ABB India Ltd closed at ₹5,252.40, down by ₹6.75, or 0.13%.
However, on February 18, shares of ABB India gained nearly 4 percent to Rs 5,440 in morning trade following the company’s strong third-quarter results. The stock rebounded from a three-day losing streak, reflecting investor optimism after the impressive financial performance.
Detailed Quarterly Performance
ABB India’s robust performance in the October-December 2024 quarter was driven by strong revenue growth. The company posted a net profit of Rs 528.41 crore, up from Rs 338.68 crore during the same period last year. This was supported by a 22 percent rise in revenue, which reached Rs 3,364.93 crore. The company achieved its highest-ever quarterly revenue for the December-ended period in the last five years.
On a sequential basis, ABB India’s net profit saw a 20 per cent uptick, while its revenue climbed 16 per cent. For the full year, ABB India reported its highest-ever order book at Rs 13,079 crore and revenue of Rs 12,188 crore.
Order Book and New Orders
As of December 2024, the company’s order book stood at Rs 9,380 crore, bolstered by Rs 2,695 crore in new orders. However, the company noted a 14 per cent decline in new orders compared to the previous year, partly due to the impact of large one-time orders in the same quarter of CY2023.
Driving Factors for Growth
ABB India attributed the quarterly growth to strong demand across various sectors, including metals, mining, energy, chemicals, buildings and infrastructure, food and beverage, electronics, and renewables. The Process Automation segment saw growth, driven by the metals industry, while Robotics & Discrete Automation experienced a significant leap in order bookings compared to CY2023.
Market Trends and Disclaimer
At about 9:20 am, shares of the company were trading at Rs 5,230, higher by 3.6 percent from the last close on the NSE. ABB India shares have shown volatility, having declined nearly 25 percent since the start of the year.
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Sources: https://www.cnbctv18.com/market/stocks/abb-india-share-price-q4-results-net-profit-ebitda-jumps-revenue-surge-margin-expands-dividend-19560301.htm
https://www.moneycontrol.com/news/business/markets/abb-india-shares-rally-nearly-4-as-q3-earnings-impress-street-12943487.html
https://www.financialexpress.com/market/abb-jumps-nearly-5-3-reasons-motilal-oswal-maintains-buy-are-3752618/