ABB India shares up 9% on Q4 results; Motilal retains 'Buy' ahead of conference call

ABB India Ltd shares jumped 9 per cent in Wednesday's trade as the company reported a double digit growth in December quarter sales and profit, with it board announcing a final dividend of Rs 23.80 per share. ABB said the strong traction in large orders continued in the fourth quarter, with railways, metals, data centers, cement, specialty chemicals, and construction machinery contributing most to earnings.

The stock rose 9.10 per cent to hit a high of Rs 4,933.95 on BSE. ABB India said its profit for the quarter grew 13 per cent YoY to Rs 345 crore on 14 per cent YoY rise in revenue at Rs 2,757 crore. ABB India bagged orders worth Rs 3,147 crore while its total order book jumped to Rs 8,404 crore.

Post ABB's quarterly results, Motilal Oswal suggested a 'buy' on the stock. It said there was a miss on revenue but healthy beat on profitability. The company is scheduled to host conference call at 11:30 am today.

Management commentary
Managing Director Sanjeev Sharma said December's were highest quarterly revenues in the last five years.

"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," he said.

ABB India, Sharma said, is focused on superior margins and a strategic mix continues to aid in robust cash generation. He said his company continues to make strides in sustainability at the core of all our activities, "aligning with ABB Group’s Sustainability agenda."

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