Margin pressure from QCO compliance and forex
Higher import content due to QCO compliance and adverse forex movements (euro/CHF) compressed margins; impact may persist for 2-3 quarters.
ABB / Q2-FY25 / risks
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ABB India · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
high
Chinese competition in process automation
Management acknowledged Chinese manufacturers are participating in heavy industry projects with aggressive pricing, causing ABB to lose some orders.
Delayed private capex and large order conversion
Customers are delaying investment decisions due to global uncertainty, leading to a sluggish large-order environment.
Price realization pressure in Motion business
Increased competition from new entrants (WEG, Nidec) and capacity expansions are pressuring pricing in motors and drives.