ABB India Limited — Q1 FY24
ABB India delivered a strong Q1 CY2024 with revenue crossing INR 3,000 crore for the first time, growing 28% YoY, driven by robust execution of a record backlog.
bullish
high
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
59%Questions answered2Evaded / deflected11Questions audited
Partial answer
High priority
How is ABB investing cash yield to build capacities for emerging opportunities?
Asked by Renu Baid, IIFL Securities
Management gave a generic answer without quantifying investment plans or specific opportunities.
no specific investment plangeneric answer
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Question
how is ABB planning to invest its cash yield and build up its portfolio for these emerging opportunities in the domestic market?
Kiran Dutt, President, Electrification
we continue to invest in the incremental expansion of our capacities, both in the people resources as well as the physical resources are concerned.
Evasive
High priority
Can you quantify contribution from high-priced orders to margins?
Asked by Renu Baid, IIFL Securities
Management declined to quantify the impact, citing unpredictability and forward-looking policy.
no number givenrefused to quantifyforward-looking disclaimer
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Question
possible to broadly quantify in the backlog or, if at all, in terms of revenue, approximate contribution from these in terms of dips towards the margins from these high-priced orders?
Kiran Dutt, President, Electrification
we don't give any forward-looking forecast on it... it is not such a way predictable to say that whether the existing backlog would give us the same level of margins as what we saw in the Q1
Answered
Medium priority
Which categories drove 30% growth in 'other products' segment?
Asked by Renu Baid, IIFL Securities
Management directly listed the key categories driving growth.
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Question
possible to broadly mention any notable categories within these other segments, whether it was UPS for data centers, metering products, etc., which drove higher growth?
Kiran Dutt, President, Electrification
data centers definitely is one. Railways is another one, and the metro. These are the ones which are playing out plus the electronic sector and the automotive side
Partial answer
Medium priority
How is motion segment showing high margins despite high import content?
Asked by Jonas Bhutta, Aditya Birla Sun Life AMC
Management explained demand drivers but did not directly address how high import content coexists with high margins.
did not address import contentfocused on demand drivers
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Question
despite a higher import content and pricing pressure for standard products, just wanted to understand how is the motion segment showing such high margins
Sanjeev Arora, President, Motion
customers are building their blocks on the sustainability and energy efficiency... we are growing much, much faster than the market growth with the low-voltage drives or the medium-voltage drives.
Answered
Medium priority
Will IE3/IE4 motor standards reduce need for drives?
Asked by Jonas Bhutta, Aditya Birla Sun Life AMC
Management directly answered that drives demand will not be dampened, with a clear rationale.
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Question
Will the adoption of maybe an IE3 or IE4 motor standard take away some of the need for drives in the future?
Sanjeev Arora, President, Motion
IE3, IE4 motors will never, ever dampen the momentum of drives because... hardly 15%-20% of the motors in the industry today are using drives.
Declined
Low priority
What percentage of drives portfolio is localized?
Asked by Jonas Bhutta, Aditya Birla Sun Life AMC
Management explicitly declined to provide a specific percentage.
refused to share percentage
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Question
What % of our drives portfolio is localized?
Sanjeev Arora, President, Motion
That is one thing which we refrain from expressing. But then I can tell you, we have a good amount of localization.
Answered
High priority
Is data center contribution >10-15% of revenue?
Asked by Mohit Kumar, ICICI Securities
Management directly denied the specific range, though did not provide an alternative number.
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Question
Is it possible to give some sense of the data center contribution as a percentage of our revenues? Is it fair to say the contribution has reached more than 10%-15% of the top line?
Sanjeev Arora, President, Motion
No, it has not reached to those particular levels, right? So it is, of course, a very fast-moving market
Answered
High priority
Is data center opportunity accelerating vs last year?
Asked by Mohit Kumar, ICICI Securities
Management clearly stated the opportunity is accelerating.
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Question
How do we see this strategic opportunity this year versus last year? Is it looking better or flat compared to last year?
Kiran Dutt, President, Electrification
It is accelerating. It's increasing in the size, the size of the data centers, and also the players are doubling up the investment in this area.
Evasive
Medium priority
How much market penetration in Tier 2/3 cities?
Asked by Mahesh Bendre, LIC Mutual Fund
Management did not provide any specific coverage percentage or penetration level.
no quantificationvague answer
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Question
how much market we have covered in terms of Tier 2 and Tier 3 cities and what more penetration we can achieve?
Kiran Dutt, President, Electrification
If you ask me how much we have covered, we have a long way to go. We would do that in the course of the years to come
Partial answer
Medium priority
Will electrification portfolio expand disproportionately in revenue share?
Asked by Amit Mahawar, UBS Group
Management did not address whether EP will grow disproportionately, only said they invest in all areas.
did not answer disproportionate sharegeneric investment comment
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Question
any specific gaps majorly you would want to cover on the medium voltage side for data center... will EP expand disproportionately in revenue share in the next five years?
Kiran Dutt, President, Electrification
we are investing in all areas, namely electrification, motion, and process automation... we feel we're fairly complete
Partial answer
High priority
How is the large order pipeline for the rest of the year?
Asked by Parikshit Kandpal, HDFC Securities
Management listed segments but gave no numbers or visibility on pipeline size.
no quantitative pipelinequalitative only
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Question
how's the large order pipeline panning out for the rest of the year.
Kiran Dutt, President, Electrification
Large orders, we are getting from railways for the Motion... data centers for the Electrification... Process Automation... That's where the bulk of the large orders are sitting
Partial answer
Medium priority
How is services profitability different from product portfolio?
Asked by Ashwani Sharma, HSBC
Management gave service margin but did not compare with product margins as asked.
no product margin comparisononly gave service margin
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Question
how is the profitability different in services portfolio versus product portfolio?
Sanjeev Arora, President, Motion
I think we feel at northwards of +25%. That's the problem. I mean, any service business revenues will go beyond 25% of the margins level, so EBITDA margins level.