ABB India Limited — Q1 FY25
ABB India reported a modest Q1 CY2025 with orders up 4% YoY and revenue up 3% YoY, while PAT grew 3%.
neutral
medium
✓ Verified against BSE filing
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.
45%Questions answered3Evaded / deflected10Questions auditedContradictedNumbers vs filing
Evasive
High priority
Will PA order postponements flip revenue growth to single-digit?
Asked by Renu Baid Pugalia, IIFL Capital Services
Management acknowledged the issue but gave no specific outlook, deferring to later quarters.
no guidance givendeferred to future quarters
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Question
What we saw in PA in the last quarter with respect to orders getting postponed from customers and execution, does that phenomena concern you in terms of the likely execution for this year that we may flip from double-digit growth to single-digit or flattish execution this year?
TK Sridhar (CFO)
In our view, the process automation business represents largely the projects business, which is about 10% of our total portfolio. ... It's very difficult. We have just finished the first quarter briefing, so it's difficult to say what happens end of the year.
Partial answer
Medium priority
What products drove the 'others' segment growth?
Asked by Renu Baid Pugalia, IIFL Capital Services
Management gave broad strategic commentary but did not name specific products driving the growth.
no specific product namesgeneric explanation
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Question
Within the product segment, others as a category in the last two years have grown very smartly from INR 1,400 crore to INR 2,400 crore + revenues, fastest CAGR. Can you share some insights in terms of what type of product portfolios become a part of others here?
Sanjeev Sharma (Country MD)
If you have been Renu, you've been hearing our commentary for at least, in my history, about 38 quarters. We have maintained that we play the market from three or four angles. ... Definitely, you mentioned localization of the product.
Evasive
High priority
When will process automation return to growth?
Asked by Mahesh Bendre, LIC Mutual Fund
Management did not provide a specific timeline for recovery, instead citing market conditions.
no timeline givenrefers to external factors
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Question
The process automation business is showing a weakness in terms of negative growth for the last three quarters. When do you think we'll be able to come back on the growth path in this segment?
Sanjeev Sharma (Country MD)
As far as when we talk about ABB present in this market with 18 divisions and 23 market segments, we are the true reflection of what the market is doing. ... I would say indirectly, if we watch these market segments and see the CapEx formation there and the government CapEx release, I think that should have a direct correlation with when the recovery in the process automation businesses will come.
Evasive
High priority
Will order inflow momentum remain soft?
Asked by Mahesh Bendre, LIC Mutual Fund
Management avoided giving a clear outlook, citing uncertainty and past performance.
no specific forecastdeferred to macro uncertainty
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Question
Last two quarters, the order inflow has been soft overall. We had a single-digit growth this quarter, and previously, we had a negative growth. Going into next two to three quarters, will the momentum remain the same?
Sanjeev Sharma (Country MD)
We are coming on back of last five years, wherein we grew CAGR 22% in the last five years, and our revenues grew 20.5% on back of economy growing 6%-6.5%. ... Whether it happens in running quarter or it happens in next quarter is difficult to say, but we are very optimistic going forward that we'll have reasonable rates of growth in this market for us.
Answered
Medium priority
How to interpret the high/moderate/low sector chart?
Asked by Subramaniam Yadav, SBI Life Insurance
Management clearly explained the chart is based on yearly trends, not quarterly.
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Question
When we see Q1Q changes in a couple of sectors moving to moderate, what is the view we take? Is it a quarterly view we take or a yearly view we take on this sector, and then we move that segment to moderate from below?
Sanjeev Sharma (Country MD)
That's an interesting question. One is that this particular picture is both for our internal as well as external consumption. ... Ideally, it is not quarter to quarter because this capital formation of the size we look for and we track does not change quarter to quarter. I would say calendar year basis is a reasonable way to look at it.
Partial answer
Medium priority
What is the outlook for service income mix?
Asked by Subramaniam Yadav, SBI Life Insurance
Management gave a target but no timeline or plan to achieve it.
no specific timeline for 15% target
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Question
If you can give some color on the service income because that buy has been increasing and leading to better margin for us. How do we look at that service mix going ahead?
Sanjeev Sharma (Country MD)
Service is almost every time between 12%-13%, but ideally, I think our aim is to get to 15%, but with more orders coming in. Service as a percentage looks pretty much the same.
Declined
Low priority
What was IE3/IE4 motor penetration in CY2023?
Asked by Mohit Kumar, ICICI Securities
Management refused to provide the requested data, citing granularity and sensitivity.
declined to sharecited sensitivity
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Question
As per the annual report, the penetration of IE3 and IE4 was 54%. What was this number for CY2023? And what will your market share in IE3 and IE4 motors?
Sanjeev Sharma (Country MD)
Yeah. So Mohit, actually, it's a very good question. I'm also interested in those numbers, but today, Sanjeev Arora is not here. He's traveling. He is responsible for that business. We may not be able to give that answer immediately. Plus, we typically do not go to that granularity of information because it's very kind of sensitive to the business.
Answered
Low priority
How does Siemens Gamesa acquisition benefit India?
Asked by Mohit Kumar, ICICI Securities
Management clearly stated the acquisition has little relevance for India currently.
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Question
How does the acquisition of Siemens Gamesa Renewables Electronics portfolio help ABB India? What are the revenues for this business in India in calendar year 2024?
TK Sridhar (CFO)
That is a global acquisition. What has happened in India, we have not a great footprint about it, so we are buying only some inventories and capital equipment, as what we informed the stock exchange in the last quarter. ... Not much of relevance for India, at least, as what it is.
Partial answer
Medium priority
Are prices being cut due to sluggishness?
Asked by Parikshit Karnapal, HDFC Securities
Management acknowledged price pressure but did not quantify the impact.
no quantification of price cuts
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Question
Given slight sluggishness in the market and the muted growth, how are the prices for the products holding on? Have you seen any price cut, or has the competitive intensity increased?
Sanjeev Sharma (Country MD)
Generally, on an overall basis, you're right. I think there is a bit of a sluggishness in the marketplace, more especially on the large project side, I would say. In certain product categories, of course, there is an increased competitive intensity. ... I would say that is on the minor side of the portfolio.
Answered
High priority
What is the margin guidance?
Asked by Parikshit Karnapal, HDFC Securities
Management reaffirmed the existing margin band without change.
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Question
Any commentary on the margin guidance? I mean, still maintain that 13%-15% band, or how it will move now on the net margin levels?
Sanjeev Sharma (Country MD)
I think we have been saying that 12%-15% is where we are talking at the back margins at this point of time. So that's how it is.
Partial answer
Medium priority
How will exports and services mix improve?
Asked by Umesh Raut, Nomura India
Management explained the math but did not provide a target for the mix.
no specific target for mix improvement
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Question
If I look at your trend as a percentage of contribution from exports and services, it is remaining rangebound at the range of about 10%-14% since last few quarters. How do you see a pickup happening here?
Sanjeev Sharma (Country MD)
A growth of 40% on export side, I believe, is quite a healthy growth. This is something which is available. When we talk about percentages, as long as the domestic market growth is strong, then the percentages of export, even after 40% growth, looks nominal, right?
Partial answer
High priority
How will you utilize INR 57 billion cash?
Asked by Umesh Raut, Nomura India
Management mentioned organic expansion and dividends but gave no details on M&A.
no specifics on inorganic targets
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Question
Given that you have cash balance of INR 57 billion, and some time back you have also mentioned that you are looking forward to inorganic opportunities in the domestic market, but nothing has structured in the last two years. Any color here how you want to utilize this capital going forward?
Sanjeev Sharma (Country MD)
We are expanding our capacities organically to meet the market demand. That is how some of the balances are. We have increased our dividends, so that is how our shareholders are benefiting out of our cash balances. As we speak, there are quite a few inorganic opportunities in our crosshairs, but then it takes two to tango.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Exports orders grew 40% YoY | 40% | 3% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.