The share price of this largecap railway stock was down by around 6 percent from the previous closing price on Tuesday after reporting Q3FY24 results that missed estimates.
Share Price Movement
In Tuesday’s trading session, ABB India’s share price was down by 6 percent touching the day’s low of Rs. 6,935. The stock was trading at Rs. 7,000 per share and was down 4.90 percent from the previous close of Rs.7,360.85 per share. In the past year, the stock has given around 66.50 percent returns which has outperformed nifty in the same period.
Q3FY24 Results update
The company follows January to December as its accounting year and the recent September results are considered as Q3FY24. The stock decline was due to the company’s recent quarterly results missed results estimates in Q3FY24 reported by ABB India Ltd.
In its latest filing for the quarter ending September 2024, the company reported a 5.16 percent rise in revenue year on year, reaching Rs.2,912 crore compared to Rs.2,769 crore in Q3 FY23. On a quarter-over-quarter basis, the operational revenue was up by 2.86 percent from Rs.2,831 crore in Q2FY24.
During the same period, net profit increased by 21.21 percent to Rs.440 crore in Q3 FY24, compared to Rs.363 crore in Q3 FY23, and down by 0.67 percent from Rs.443 crore in Q3 FY24. EBITDA Margins have improved to 18.60 percent in this quarter compared to 15.80 percent a year ago.
Regarding return ratios, the return on capital employed (ROCE) currently stands at around 30.39 percent, whereas the return on equity (ROE) is at 22.82 percent. The stock is trading at a P/E (Price to Earnings) ratio of around 87.8. The company also has a current ratio of 1.91 and a debt-to-equity ratio of 0.01 times in FY23.
The order received in Q3FY24 was Rs. 3,342 crore and the order backlog stood at Rs. 9,995 crore as of the September quarter. The company is entering into ventures which are considered high-growth areas like Data centres, Railways, and Metro and Electronics.
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Revenue Mix
The company earned revenues from Robotics and Discrete Automation which contributed 3.77 percent, Motion – 36.64 percent, Electrification – 39.17 percent, Process automation – 20.24 percent, and others 0.15 percent in Q3FY24. Most of the profits are from Motion and Electrification.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 75.00 percent stake in ABB India. Foreign Institutional Investors (FIIs) hold 12.28 percent, Domestic Individual Investors hold around 5.42 percent, and public holdings stand at 7.29 percent.
Company Profile
ABB India Ltd is an engineering company that specialised in electrification, automation, and robotics. They operate through three key segments which are Robotics & Motion, Electrification, and Industrial Automation. ABB India improves productivity by providing integrated solutions including smart factories and digital services.
They maintain a manufacturing presence with 14 plants and service networks across the country. Their business model focuses on innovation, leveraging technology to improve efficiency and sustainability in various industries like power, transportation, and manufacturing.
Written by – Santhosh S
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