Global economic uncertainty and demand slowdown
Management acknowledged global and local uncertainties that could impact demand, though they see no direct correlation with their diversified portfolio.
ABB / Q3-FY24 / 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
medium
Pricing pressure in LT motors
LT motors faced pricing headwinds due to competition and muted demand in heavy industries like cement and steel, though erosion has stabilized.
Execution delays in large projects
Large orders have longer gestation periods and are subject to customer-driven delays, as seen in the traction division's design change for railway orders.
Order conversion delays in process automation
Process automation saw an order slip to the next quarter due to customer decision delays in oil and gas, though the pipeline remains strong.