ABB India shares slip 7% from day's high as company's guidance disappoints investors

ABB India shares have cracked nearly 25 percent since the start of the year.

Shares of ABB India, a manufacturer of industrial equipment and power systems, fell as much as 7.6 percent from the day's high to Rs 5,093 following the company’s post-result earnings call which suggested that it could witness growth moderation before the next cycle of growth starts. The stock touched an intraday high of 5 percent before slipping into the negative.

ABB India reported a robust 56 percent increase in its net profit for the October-December 2024 quarter, buoyed 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 strong performance was driven by a 22 percent rise in revenue, which reached Rs 3,364.93 crore. Notably, the company achieved its highest-ever quarterly revenue for the December-ended period in the last five years.

Follow our LIVE blog for all the latest market updates

On a sequential basis, ABB India’s net profit saw a 20 per cent uptick, while its revenue climbed 16 per cent. In addition to the quarterly performance, ABB India highlighted its impressive achievements for the full year, marking its highest-ever order book at Rs 13,079 crore and revenue of Rs 12,188 crore.

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 percent 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.

During its earnings call, the company highlighted its commitment to sustainability, noting a reduction in emission intensity compared to the previous year. ABB India remains optimistic about its growth prospects in the country, with consumption, investment, and premiumisation emerging as key trends to watch in 2025. The current order backlog, it added, provides strong visibility for the year ahead.

The board of ABB India also announced a final dividend of Rs 33.50 per share for the financial year ending December 31, 2024, subject to shareholder approval. The company follows a January-December fiscal year.

At about 2:25 pm, shares of the company were trading at Rs 5,122, lower by 2.3 percent from the last close on the NSE. ABB India shares have cracked nearly 25 percent since the start of the year.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.