ABB India Limited — Q4 FY24
ABB India delivered a strong Q4 2024 with revenue up 22% YoY and PAT up 54% YoY, driven by robust execution across all 18 divisions.
bullish
high
✓ 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.
55%Questions answered1Evaded / deflected10Questions audited
Partial answer
High priority
Concern about order backlog growth slowing to 12% and macro risks.
Asked by Renu Baid Pugalia, IIFL Capital Services Limited
Acknowledged slowdown but gave qualitative reasons without quantifying impact or recovery.
no specific timeline for recoveryattributed to elections and rains without data
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Question
does this concern you that the acceleration that we saw in the last couple of quarters has slowed down? And any macro retreat of potential slowdown from private sector CapEx or slowing government investments?
Sanjeev Sharma, Country Managing Director
We think it's more transient in nature. I think we should observe as we grow in coming years and coming quarters, there'll be strong cycles of growth, and there'll be moderation before the next cycle of growth starts.
Evasive
Medium priority
Roadmap to increase export share from 10% and impact of US tariffs.
Asked by Renu Baid Pugalia, IIFL Capital Services Limited
Did not provide a roadmap or quantify tariff impact; deflected to global decision-making.
no roadmap givendeferred to global divisionsno quantification
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Question
what would be the next three- to five-year roadmap to increase the share of exports in absolute sense? And any tailwind that you see from the global or from the U.S. tariff wars for the India portfolio here?
Sanjeev Sharma, Country Managing Director
Export journey, we see net positive for India... we have seen already the evidence of it in some of our businesses wherein exports have grown sharply in the last few years, and that journey will continue.
Partial answer
High priority
Sustainability of 40%+ gross margins and competitive pressures.
Asked by Renu Baid Pugalia, IIFL Capital Services Limited
Answered with a PAT margin corridor but did not address gross margin sustainability directly.
refused to give specific margin guidancereferred to PAT margin corridor instead
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Question
do we think a 40% plus material of gross margins is sustainable, or we may have to invest back to ensure that we retain a higher share of the domestic market?
T. K. Sridhar, CFO
I'm not going to be a fortune teller... a band of 12%-15% of that level is what we would like to look at, right? So that's the basically thing which we are, at this point of time, focusing on.
Partial answer
High priority
Plans for cash of INR 54 billion (75% of net worth).
Asked by Sumit Kishore, Axis Capital
Listed uses but gave no specifics on size or timing of organic/inorganic plans.
no specific inorganic targetsorganic expansion details not provided
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Question
Cash is a percentage of net worth almost 75% plus at INR 54 billion. How are you? What are you planning?
Sanjeev Sharma, Country Managing Director
Firstly, we are distributing cash to our shareholders. So it is 51% higher dividend compared to previous year. Second port of call is that the cash is getting consumed in our organic expansion... We also have a pipeline for inorganic opportunities.
Partial answer
Medium priority
Revenue exposure breakdown by end customer segments.
Asked by Sumit Kishore, Axis Capital
Provided only a high-level indirect exposure number, not the detailed breakdown requested.
refused segment-wise breakdowngave only aggregate indirect exposure
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Question
Could you sort of help us break down broadly ABB's revenue exposure to, say, government-funded infra, transportation CapEx, power generation T&D, process industry, new age sectors including data centers and real estate?
T. K. Sridhar, CFO
I would give you a collective number, not segment-wise number... our exposure directly to government customers or utility customers is absolutely very, very, very minor... indirect exposure to government-led investments would be around about 35%-40%.
Partial answer
Medium priority
Which segments are doing well and which are not; order inflow growth target.
Asked by Vishal Biraia, Bandhan AMC
Provided qualitative segment commentary but did not give a numeric order inflow growth target.
no order inflow growth target givendelegated to business heads for qualitative color
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Question
could you delve a bit deeper into which other segments, subsegments for us that are doing better, and which are the ones that are actually not doing that great? ... What would be the growth in inquiries that you would have? So what is the kind of order inflow growth that you would target for the year?
Sanjeev Sharma, Country Managing Director
We can give you a bit of a granular outlook based on our business leaders. So by electrification, I can start with Kiran Dutt.
Answered
Medium priority
Will large order execution cause quarterly revenue skewness going forward?
Asked by Mohit Kumar, ICICI Securities
Clearly stated that quarterly mix varies and no trend can be inferred; answered directly.
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Question
Does this quarter should indicate to us that this kind of skewness in certain quarters because the execution of large orders will happen more often as we go forward?
Sanjeev Sharma, Country Managing Director
The mix will keep changing from one quarter to the other... there is no particular trend that you can say. And typically, at my level, I don't look at quarter-to-quarter picture.
Partial answer
Low priority
Clarification on growth segments: order or revenue basis, and why growth rates changed.
Asked by Mohit Chaturvedi, HSBC Mutual Funds
Did not explicitly state whether growth is on orders or revenue; gave a general explanation.
did not clarify order vs revenue basisattributed change to base effect without specifics
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Question
I just wanted to understand when you talk about the growth centers, is it on the order side or the revenue side? ... there's been a sharp deviation in the growth numbers that we assign to each of these segments.
Sanjeev Sharma, Country Managing Director
These so-called high growth segments, they used to be small earlier, but now their size has grown. So relative spend is growing, but percentage gets normalized.
Partial answer
High priority
Sustainability of electrification order intake after sharp decline in Q4.
Asked by Amit Mahawar, UBS
Explained decline by large prior order but gave no numbers on pipeline or sustainability.
attributed decline to base effect of large orderno quantitative pipeline details
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Question
If you see the United States six quarters, and this is the Q1 where overall orders are down, very, very sharply down... Any comment on sustainability of this electrification profit, order intake rate?
Kiran Dutt, President of Electrification
There's a sharp decline with respect to Q3 and Q4. I think already there has been a comment from Sridhar on this particular topic where we said that we did have a very large order which was in Q3 for a data center... the pipeline is quite large, and we believe it's going to really support us in future growth.
Answered
High priority
Risk from increased Chinese competition due to trade war.
Asked by Aditya Mongia, Kotak Securities
Provided clear qualitative assessment per business segment that Chinese competition is not intense currently.
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Question
I wanted to get a sense from maybe a different business head of the risk from increased competition from Chinese players. If you could give us quantitative or qualitative data about segments, that would really help.
Sanjeev Sharma, Country Managing Director
We don't see a one-to-one high-intense competition on the MO portfolio yet. I think if our view changes, I think we'll let you know in future. On the electrification side... no. The intensity is not so high.
Partial answer
High priority
Sustainability of margins and pricing trends on ground.
Asked by Sahil Aggarwal, Nomura
Reiterated PAT margin corridor but did not discuss pricing trends or margin sustainability beyond that.
repeated earlier PAT corridordid not address pricing trends specifically
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Question
We've seen the last couple of years we've had this substantial improvement in margins. I just wanted to know that, and we are also much ahead of our peers in multiple segments. So are the margins sustainable here? That's one part of the question. And second, what are you picking up on pricing on ground?
T. K. Sridhar, CFO
I think I have answered this question in my dialogues earlier questions as well... we would still be in a corridor of 12%-15% PAT as what I was mentioning.