High valuation may cap significant upside in ABB India's stock

ABB India's performance during the January-March quarter (Q1 of CY25) was disappointing with weaker revenue booking.

- DEVANGSHU DATTA

The process automation segment reported a 19 percent year-on-year (Y-o-Y) decline in revenue as customers deferred deliveries. This led to low earnings before interest, taxes, depreciation and amortisation (Ebitda) as well as earnings growth.

ABB India follows the January-December accounting year.

Order inflow was stable at ₹3,750 crore with 4 percent Y-o-Y growth in inflows, taking the order book to ₹9,960 crore (up 11 percent Y-o-Y).

The uncertain global macro may lead to near-term challenges.

ABB's Q1CY25 revenue at ₹3,160 crore (up 3 percent) was impacted by lower revenue booking in the process automation and electrification segments.

The robotics and motion business's revenue stood at ₹1,240 crore (up 11 per cent Y-o-Y).

For the electrification products business, it was ₹1,360 crore (up 5 percent) and for process automation, it was ₹580 crore (down 19 percent).

ABB is expanding reach in Tier-II and below, and expects the momentum to continue. Key end-markets include industrial, data centres, metros & railways, renewables, waste & wastewater, automotive, warehouse & logistics, building & infra.