ABB India Ltd, a leading player in electrification and automation, reported a 56% year-on-year increase in net profit, reaching ₹528.4 crore for the fourth quarter ending December 31, 2024, compared to ₹338.7 crore in the same period last year (Q4FY24).In Q4 CY2024, the company saw a 4% increase in base orders, although total orders declined by 14% due to the impact of large one-time orders received in CY2023. Despite this, it achieved its highest Q4 revenue in the past five years. Profitability remained strong, with Profit Before Tax (PBT) before exceptional items rising by 55% year-over-year (Y-o-Y), while Profit After Tax (PAT) increased by 54% Y-o-Y, reflecting robust financial performance.
For the full year CY2024, the company recorded its highest-ever orders at INR 13,079 crore and revenue at INR 12,188 crore. Large orders saw a 20% Y-o-Y growth, while PBT before exceptional items rose by 51% and PAT by 50% Y-o-Y. The Return on Capital Employed (ROCE) reached an all-time high of 26.5%. Additionally, the company engaged with over 5,000 customers in 30+ tier 2 and tier 3 markets through ABB Technology Day and enhanced supplier sustainability efforts with a 33% increase in ESG awareness, training, and support. The board recommended a final dividend of INR 33.50 per share, complementing the interim dividend of INR 10.66 per share declared in Q2 CY2024.
Sanjeev Sharma, Managing Director of ABB India, stated, “2024 marks another year of record-high orders, revenue, and profitability. Celebrating 75 years of manufacturing and innovation in India, we continue to leverage global technology with local engineering and manufacturing. Our commitment to customer-centricity, sustainability, and strategic growth ensures that we remain well-positioned to navigate market opportunities and challenges.”
ABB India reported strong business growth in Q4 CY2024, with orders totaling INR 2,695 crore for the quarter and INR 13,079 crore for the full year. Base orders for the quarter increased by 4%, though total orders saw a decline due to large order comparisons from Q4 CY2023. The Process Automation segment experienced significant growth, driven by demand in the metals sector, while Robotics & Discrete Automation also saw a notable rise in orders. Key contributors to order growth included metals and mining, energy and chemicals, infrastructure, food and beverage, electronics, and renewables. Large orders grew by 20% year-over-year, with substantial contributions from data centers and railways. Over the past five years, ABB India has maintained an impressive 22% CAGR in orders.
Key orders in Q4 CY2024 included composite converters for railways, distribution solutions for a major engineering and construction firm, and robotics solutions for leading electronics and automotive manufacturers. Additionally, the company secured automation solutions for an expansion project in metals manufacturing, air-insulated switchgear orders from a petrochemical company, and distribution and control systems for a global data center. Other significant orders included modernization and capacity enhancement projects in power distribution, motion solutions for a large power corporation, and solar energy solutions such as vacuum circuit breakers supporting approximately 6GW of solar capacity.
Revenue for Q4 CY2024 reached INR 3,365 crore, contributing to a full-year revenue of INR 12,188 crore, driven by strong order execution and optimal capacity utilization. The Electrification segment led revenue growth, benefiting from high demand from data centers and EPC customers. Robotics gained traction in the electronics and automotive industries, while the Motion segment saw increased demand for drives and converters. Profitability remained strong, with PBT before exceptional items standing at INR 705 crore in Q4 (a 55% Y-o-Y increase) and INR 2,513 crore for the full year (a 51% Y-o-Y rise). PAT for Q4 grew to INR 532 crore (up 54% Y-o-Y), while full-year PAT reached INR 1,875 crore (up 50% Y-o-Y). The company reported income tax expenses of INR 638.65 crore for the year, with an Effective Tax Rate (ETR) of 25.4%.
ABB India ended the year with a strong financial position, maintaining cash reserves of INR 5,390 crore. Inventory levels were strategically managed in alignment with backlog execution schedules. The company made significant strides in sustainability, reducing Scope 1 and 2 greenhouse gas emissions by approximately 86% from its 2019 baseline. Nearly 50% of its manufacturing facilities achieved water-positive and zero-waste-to-landfill certifications. Additionally, supplier ESG awareness and assessment enrollment increased by 40.5%, marking a 33% rise over 2023. ABB India also successfully completed an independent assurance exercise on Business Responsibility and Sustainability Reporting (BRSR) principles, further solidifying its commitment to responsible business practices.
Looking ahead, ABB India remains committed to its “local for local” strategy, leveraging its 75 years of expertise across 23 market segments. The company stands to benefit from the Indian government’s continued capex investments in infrastructure and renewable energy. It is well-positioned for growth in high-potential sectors such as chemicals, pharmaceuticals, automotive, power distribution, water, electronics, and digitalization, which are expected to attract significant investments in 2025. The company will also closely monitor geopolitical developments and their potential impact on domestic market dynamics, including consumption trends, private investments, inflation, foreign exchange fluctuations, and climate-related risks.
ABB is a global leader in electrification and automation, driving sustainability and efficiency across industries. With over 140 years of history and a workforce of approximately 110,000 employees worldwide, ABB combines engineering expertise and digital innovation to enhance industrial performance. The company’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).
