- ABB India’s Q4 2023: 14% revenue growth, 13% net profit rise.
- Stock price surges 5% on February 21 in response to strong performance.
- Order intake increases by 35% to Rs 3,147 crore during Q4.
- Final dividend of Rs 238 per share recommended by the board.
- Managing Director credits growth to diverse market segments and portfolio expansion.
ABB India’s Revenue increases by 14% year on year, while net profit rises by 13% :
ABB India’s financials for Q4 2023 demonstrate exceptional development, with a significant increase in revenue and net profit.
Share price rises 5% after encouraging results :
Investors are pleased with ABB India’s strong performance, sending the stock price up 5% in early trading.
Strategic Expansion and Customer Confidence Drive Growth :
The company credits its success to smart market expansion and maintaining client trust in its products and services.
Dividend Recommendation reflects confidence in future prospects :
The board’s recommendation for a final dividend demonstrates confidence in ABB India’s future growth prospects.
Comparative Analysis of Market Performance :
Despite a 5% increase in stock price over six months, ABB India’s performance is somewhat below the Nifty 50 index.
Content:
ABB India’s stock surged by 5% in early trade on February 21, boosted by the company‘s strong financial performance in the fourth quarter of 2023. The engineering services firm recorded a 13% increase in net profit for the quarter ending December 2023, totaling Rs 345 crore.
At 9:17 a.m., ABB India shares were trading at Rs 4,741.05, up 4.79% on the National Stock Exchange (NSE) from the previous session’s close. The company’s sales also increased significantly, rising 14% year on year to Rs 2,757 crore during the quarter.
The revenue growth was accompanied by a significant increase in order intake, which grew by 35% to Rs 3,147 crore in the fourth quarter of CY23. This was ABB India’s greatest fourth-quarter revenue in the past five years. Furthermore, the order backlog as of December 2023 was Rs 8,404 crore, representing a strong 30% year-on-year rise.
Sanjeev Sharma, Managing Director of ABB India, attributed the company’s broad-based development to its increased engagement in multiple market areas and portfolio expansion suited to the Indian market. He thanked customers for their continued faith in ABB India’s Electrification and Automation products, solutions, and services. Sharma emphasised the company’s focus on higher margins and a smart product mix, which continue to deliver strong cash generation.
The board of directors proposed a final dividend of Rs 238 per share, indicating continued confidence in ABB India’s future prospects and financial stability.
Despite the good results, ABB India’s stock price has grown only around 5% in the last six months, trailing the leading Nifty 50 index, which has risen almost 14%.
To summarise :
ABB India’s solid performance in Q4 2023 demonstrates its strategic expansion efforts and continuing customer confidence. While the stock price rose significantly in response to the positive results, the company remains committed to maintaining its growth pace and providing long-term value to shareholders.