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Business News/ Markets / Stock Markets/  ABB India share price surges over 6% as Q4 profit beat estimates; here's what analyst say
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ABB India share price surges over 6% as Q4 profit beat estimates; here's what analyst say

ABB India stock prices rose with strong Q4 results, recording a 13% increase in profit after tax. Company reported highest Q4 revenue in 5 years and a 35% increase in total orders.

ABB India share price opened at an intraday low of ₹4,622.30 and touched an intraday high of ₹4,799.95. Premium
ABB India share price opened at an intraday low of 4,622.30 and touched an intraday high of 4,799.95.

ABB India share price surged over 6% on Wednesday's trading session as Q4 CY2023 profit exceeded the Street's estimates. The company follows a fiscal year that spans from January to December. ABB India share price opened at an intraday low of 4,622.30 and touched an intraday high of 4,799.95. 

In its analysis, brokerage Motilal Oswal Financial Services stated that although ABB India's revenue fell short of the brokerages' projections, its profitability surpassed expectations. Electrification (+19%), Process Automation (+23%), and Robotics and Motion (+2%) drove ABB India's 14% YoY revenue rise to 2,757 crore. According to the brokerage, strong operational performance drove a 13% YoY increase in PAT of 345 crore.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, ABB India stock prices have seen a strong gap-up opening, and we are seeing heavy volumes in the initial trades. Considering the momentum, we can expect further upmoves and retests of recent highs around 4,950; support is seen at 4,650. 

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ABB India reported a 13% increase in profit after tax (PAT) to 345 crore for the fourth quarter that concluded on December 31, mostly due to increased revenue. According to company's filing, its PAT for the October to December quarter of the previous fiscal year was 306 crore.

The company's total revenue increased from 2,427 crore to 2,757 crore in the reviewed quarter from the same period last year. The total orders received in the fourth quarter increased by 35% to 3,147 crore. The firm got orders of 12,319 crore in 2023, a 23% increase over 2022.

"The total orders were up by 35%, a strong contribution from large orders. The highest ever Q4 revenue in the last 5 years. All-time high “PBT before exceptional (%) at 13% driven by operational leverage, differentiated offerings, and customer preference, PAT up by 13% Y-o-Y," highlighted the company in its exchange filing. 

The board of directors of the company also announced a final dividend of 23.8 apiece. 

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“We are pleased to close another year with a record-high performance, achieving our highest quarter 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 localisation for Indian market," said the Sanjeev Sharma, Managing Director of ABB India.

According to ICICI Direct Research's analysis, ABB would have high growth potential in the medium future if its backlog grows at a rate of 30%. With its wide range of products, ABB will be in a favourable position due to the continuous capital expenditure cycle across industries. Valuations, however, are still high. From a three to five year time horizon, one should buy into any significant decline in the stock.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

 

 

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Published: 21 Feb 2024, 09:49 AM IST
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