Electrification leveraged positive price impact, Motion from products, system drives, Process Automation from commissioning projects complementing the infrastructure surge and energy requirement, and Robotics from construction and automotive industry’s recovery.

In Q4 CY2023, profit before tax stood at Rs 454 crore, down by 6.19% from Rs 400 crore in Q4 2022. This was mainly driven by higher capacity utilization, revenue mix and price realization, supported by softening of commodity prices.

During the quarter, operational EBITA jumped 13.29% YoY to Rs 409 crore, operational EBITA margin improved to 14.8% in Q4 CY23 as compared with 13% recorded in Q4 CY22.

The company’s total orders stood at Rs 3,147 crore in Q4 CY23, up 34.78%YoY. The quarter under review continued to witness traction in large orders while base orders held steady. Service business across divisions contributed to the growth led by the maintenance component of a large order. Electrification witnessed growth across divisions led by projects and systems. Motion benefited from the continued strength in long cycle demand.

Growth trajectory of overall market demand and service marked orders in Process Automation while for Robotics and Discrete Automation optimized requirements for specialized manufacturing, data driven automation and energy efficiency. Sectors contributing to the growth during the quarter include railways, metals, data centers, cement, specialty chemicals, and construction machinery, to name a few.

The company continues to have a strong order backlog as of 31 December 2023, at Rs 8,404 crore, an increase of 30% YoY, which provides revenue visibility and is well aligned to support growth plans in the coming periods.

The company’s cash position continues to remain robust at Rs 4,727 crore at the end of Q4 and CY2023. The net working capital increase is mainly witnessed in inventories which are consciously built to cater to the delivery of the backlog as per the agreed schedule.

On the outlook front, the company said that it is poised for enhanced market penetration, leveraging its diverse portfolio to capitalize on increased economic activities across power transmission, clean energy, railways and metro, public infrastructure, automation, ably supported by government investments.

The company is pioneering advancements in sectors like data centers, electronics, and logistics, aiming for sustained growth despite external headwinds and challenges such as exchange rate volatility, climate change and food inflation, escalation of geopolitical tensions and impact on international trade, global trade imbalances, commodity price fluctuations and possible drying up of global liquidity for industrial countries. It remains steadfast in its commitment to navigate these obstacles with more efficiency and agility. Its differentiated offerings and leadership position driving growth, while embedding sustainability across its operations.

Meanwhile, the company's board has recommended final dividend of Rs 23.8 per share for financial year 31 December 2023.The record date for the dividend will be 4 May 2024. The dividend, if declared at annual general meeting will be paid after 11 May 2024.

Sanjeev Sharma, managing director, ABB India said, “This milestone highlights our business divisions’ exceptional focus on customer connect, execution capabilities and commitment to continued improvement. Our broad-based growth has come on the back of the deepening engagement into diverse market segments and portfolio expansion and localization for Indian market.

We are grateful for the enduring confidence our customers place in our value adding Electrification and Automation products, solutions, and services. Our focus on superior margins and a strategic mix continues to aid in robust cash generation. We continue to make strides in sustainability at the core of all our activities, aligning with ABB Group’s sustainability agenda."

ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation.