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Business News/ Markets / Stock Markets/  ABB India shares locked at 10% upper circuit to hit 52-week high after Q4CY23 results; do you own?
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ABB India shares locked at 10% upper circuit to hit 52-week high after Q4CY23 results; do you own?

ABB India follows the calendar year for announcing its financial results and reported a net profit of ₹339 crore in the October-December period last year.

ABB India follows the calendar year for reporting financials (Company website)Premium
ABB India follows the calendar year for reporting financials (Company website)

ABB India Share Price Today: Shares of ABB India were locked at over 10 per cent upper circuit to hit a 52-week high of 5,019.00 apiece on the BSE on Wednesday, February 21, a day after reporting its Q4CY23 results. ABB India follows the calendar year for announcing its financial results and reported a net profit of 339 crore in the October-December period last year. 

The electrification and automation major's net profit rose 10 per cent compared to 305.3 crore in the year-ago period. The revenue from operations during the quarter-under-review rose 13.6 per cent to 2,757.5 crore, compared to 2,427 crore in the corresponding period last year. ABB India reported its highest ever Q4 revenue in the last five quarters.

ABB India Q4CY23 Results

The increase of profitability during the quarter was due to better cost absorption driven by higher capacity utilization, revenue mix and price realization, supported by softening of commodity prices, said ABB India in a regulatory filing to the stock exchanges.

Also Read: Tata Investment Corp shares extend gains for 7th day, touch new all-time high

On the operating front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 14.6 per cent to 417.2 crore, compared to 364.3 crore in the year-ago period. EBIT margin rose 10 basis points (bps) to 15.1 per cent compared to 15 per cent in the year-ago quarter. One basis point is a hundredth of a percentage point.

In the fourth quarter, the total orders rose up by 35 per cent to 3,147 crore. In 2023, the company received orders worth 12,319 crore, up 23 per cent over 2022. "Our broad-based growth has come on the back of deepening engagement into diverse market segments and portfolio expansion and localization for the Indian market.

The company reported an EPS of 16.29 for the fourth quarter, compared to 14.44 and 58.90 for CY2023 compared to 48.40 year-on-year reflecting the growth in profitability of the operations.

"We are grateful for the enduring confidence our customers place in our value adding electrification and automation products, solutions, and services. Our focus on superior margins and a strategic mix continues to aid in robust cash generation." the said Sanjeev Sharma, Managing Director, ABB India. Sectors contributing to the growth during the quarter include railways, metals, data centers, cement, specialty chemicals, and construction machinery, said the company.

The company's board recommended a final dividend of Rs.23.80 per share, i.e., (1,190 per cent) on 21,19,08,375 equity shares of face value of Rs. 2 each fully paid up for the financial year ended December 31, 2023, subject to shareholders' approval at the ensuing annual general meeting.

The company's board recommends a final dividend, which is in addition to special dividend of 5.5 per share declared in Q2 CY2023. The dividend, if declared at the annual general meeting, will be paid/dispatched after May 11, 2024.

ABB India Share Price Today

On Wednesday, shares of ABB India opened at 4,622.30 and gained 8.58 per cent to hit a 52-week high mark of 5,019 apiece on the BSE against a previous close of 4,522.10 on the BSE. Shares settled 10.33 per cent higher at 4,989.30 apiece on the BSE.

Domestic equity benchmark indices Sensex and Nifty 50 ended Wednesday's trading session in red amid weak global cues, and as Asian markets witnessed mixed trends. During Wednesday's morning session, the Nifty 50 touched a record high for the third consecutive session amid a broad rally in metal stocks. Metals rose 1.9 per cent, led by a three per cent rise in aluminum producer Hindalco after its US subsidiary Novelis filed for a US IPO.

The 30-share BSE Sensex ended lower by 434.31 points or 0.59 per cent at 72,623.09 level while the Nifty 50 closed at 22,055.05 level, down 141.90 points or 0.64 per cent. On the broader market front, the Nifty Small Cap 100 dropped 1.04 per cent and the Nifty Midcap 100 indexes was down by 1.25 per cent.

Brokerage View

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

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ABOUT THE AUTHOR
Nikita Prasad
Nikita covers business news and has been producing news on digital platforms since 2018. She writes on economy, policy, markets, commodities, industry. Her core areas of interests include infrastructure, energy, oil and gas, railways, and transport/mobility. She has worked for business news channels like Moneycontrol, NDTV Profit, and Financial Express in the past. If you have story ideas/pitches/reports or quotes/views to share, reach her at nikita.prasad@htdigital.in.
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Published: 21 Feb 2024, 05:43 PM IST
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