Astonishing surge in Q4 2024 net profit for ABB India, reaching an astounding 56%
ABB India Breaks Quarterly Records Amidst Growing Confidence
ABB India, a leading player in the industrial technology sector, has reported a record-breaking financial performance in Q4 2024, marking a significant milestone in the company's growth journey.
The company's revenue for Q4 2024 stood at approximately ₹3,451.55 crore, representing a 14.86% growth compared to the previous quarter, and a 22% year-on-year (Y-o-Y) increase. EBIT (earnings before interest and taxes) also saw an 18.32% Y-o-Y growth, reaching ₹710.26 crore. Profit after tax (PAT) rose significantly to ₹528.41 crore, demonstrating robust profitability in that quarter [1].
Key factors contributing to this performance include efficient cost management, low interest expense, strong growth across market segments, and stable employee costs. Total expenses grew moderately by 13.99%, less than the revenue growth, contributing to margin expansion. Interest cost was less than 1% of operating revenues, easing the financial burden. Demand in sectors such as electronics, railways, data centres, energy, metals, mining, and infrastructure contributed to order book expansion and revenue [3]. Employee costs, at 6.74% of operating revenues, remained stable [1].
However, in the subsequent quarters (Q1 and Q2 of 2025), ABB India faced challenges such as forex volatility, higher expenses, and a cyclic correction in ordering activity across sectors, resulting in reduced EBIT and PAT. Despite revenue growth, Q2 2025 net profit slid by about 20.7% year-on-year [2][3][5].
Looking ahead, ABB India projects a gradual uptick in demand driven by easing inflation and deeper market penetration. The company expects continued momentum in core sectors like electronics, railways, data centres, and energy. Confidence is based on a strong executable order backlog of over ₹10,000 crore as of mid-2025, providing revenue visibility [3]. The company plans to maintain financial health despite short-term profitability pressures from external factors by focusing on operational efficiencies and cash collection [3].
Sanjeev Sharma, Managing Director of ABB India, declared 2024 as a landmark year for the company. He also announced a final dividend of ₹33.50 per equity share, subject to approval at the upcoming Annual General Meeting (AGM) [6]. The EBITDA margin of ABB India expanded significantly to 19.5% in Q4CY24 [4].
The surge in ABB India's stock price due to strong quarterly results reflects growing investor confidence in the company's ability to sustain its growth momentum [7]. With a diversified portfolio and a strong foothold in key sectors such as electrification, automation, and robotics, ABB India is well-positioned to capitalize on emerging opportunities in India's rapidly expanding industrial landscape. Despite the near-term challenges, the company expects recovery and sustained growth supported by a solid order book and sectoral demand trends [1][2][3][5].
[1] ABB India's Q4 2024 Results Announcement [2] Business Standard Article on ABB India's Q1 2025 Performance [3] Economic Times Article on ABB India's Future Outlook [4] ABB India's Q4 2024 Earnings Presentation [5] Livemint Article on ABB India's Q2 2025 Performance [6] Press Release on ABB India's Dividend Announcement [7] Moneycontrol Article on ABB India's Stock Price Surge
- ABB India's business expansion in Africa's market segments is expected to capitalize on emerging opportunities, given the company's strong foothold in key sectors like electrification, automation, and robotics.
- To maintain financial health and sustain growth amidst external challenges, ABB India plans to invest in operational efficiencies and cash collection, focusing on logistics and cost management.
- Personal finance advisors may recommend investing in ABB India stock as it demonstrates a promising financial performance and growth potential, as seen in its Q4 2024 results and robust earnings before interest and taxes (EBIT).
- The company's strong executable order backlog, composed of large orders in core sectors like electronics, railways, data centres, and energy, assures revenue visibility and a gradual uptick in demand.
- In addition to its Indian expansion, ABB India is well-positioned to handle logistics for import activities within Africa, expanding its business and maximizing market opportunities through technology integration and partnerships.
