Engineering services firm ABB India's order backlog has grown 23 percent year-on-year (YoY), said the company's management in its Q1CY25 earnings conference call. The orders have increased 13 percent YoY to Rs 3,435 crore, bringing the total order backlog to Rs 9,517 crore.
The company said that it is currently experiencing a period of strong growth, particularly driven by emerging sectors. This growth, they noted, is a direct result of the company’s long-term focus on operational efficiencies and strategic initiatives.
Export orders have grown 39 percent YoY, driven by the specialty chemical services sector. The management noted that ABB India has been very selective in its export strategy. "We are seeing more and more of our divisions participating in the exports, but we are very selective and we are making sure that whatever we deliver out of ABB India and India has a good reputation in the minds of the customers who receive our products and solutions locally," Sanjeev Sharma, CEO, ABB India said.
ABB India revenues increased 13 percent YoY to Rs 2,800 crores, despite some delays in project scheduling and the election period. Profit after tax expanded by 50 percent YoY due to the revenue mix and order execution. Operation EBITDA was up 64 percent for the quarter.
However, the company acknowledged that it could have achieved even higher revenues. "We could have done more... we could have done almost Rs 200 crore more. But I think that was more because of an alignment to the project schedule," CFO TK Sridhar said.
This shortfall was attributed to factors like the election period and project timeline adjustments, suggesting that the potential for revenue growth remains strong.
ABB India's growth has been particularly robust in the electrification and automotive sectors, with the rising demand for electric vehicles being a key driver. "Data center has been a highlight for the last quarter. We got some very large contracts relative to the past," Sharma added highlighting the growing digital infrastructure sector as a significant contributor to their growth.
The management noted that they are confident in their ability to capitalize on opportunities within the Indian market. "The growth story of India is very much predominant still. We will see opportunities coming up as we move forward," Sridhar said.
For the reporting quarter, ABB India saw a 50 percent year-on-year rise in its net profit at Rs 443.5 crore. Total income rose to Rs 2,830.9 crore, up 12.8 percent year-on-year in the June quarter as against Rs 2508.63 crore in the previous fiscal.
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