Posted on February 18, 2025, by Niftynews
ABB India Shares experienced a strong uptick on February 18, 2025, gaining nearly 4% to reach ₹5,440 in morning trading. This rally came after the company announced its impressive third-quarter results, which saw a 56% increase in net profit. Investors were quick to respond positively, driving the stock higher following a period of three consecutive days of losses.
Despite the 25% decline in ABB India shares since the beginning of 2025, the latest quarterly results seem to have sparked renewed optimism among investors, reflecting confidence in the company’s future growth prospects.
Impressive Quarterly Earnings Highlight Strong Demand Across Sectors
In its Q3 report for the October-December 2024 period, ABB India recorded a net profit of ₹528.41 crore, up from ₹338.68 crore during the same quarter in the previous year. The company attributed the strong earnings to a 22% rise in revenue, which totaled ₹3,364.93 crore—marking its highest-ever quarterly revenue for the December quarter in the past five years.
Notably, the company also saw a sequential improvement, with net profit increasing by 20% compared to the previous quarter and revenue climbing by 16%. This robust performance was not limited to just one quarter but reflected consistent growth throughout the year, as ABB India marked a milestone by reporting its highest-ever order book of ₹13,079 crore and a total revenue of ₹12,188 crore for the full year.
Sector-Specific Growth and Contributions
ABB India attributed its strong quarterly performance to sustained demand across multiple sectors, including metals, mining, energy, chemicals, buildings and infrastructure, food and beverage, electronics, and renewables. Of particular note was the growth in the company’s Process Automation segment, which saw increased demand driven by the metals industry. Meanwhile, the Robotics & Discrete Automation segment also experienced a significant increase in order bookings compared to the previous year.
ABB India’s diversified portfolio across various industries has been a key driver of its growth. The company’s strong presence in sectors poised for growth, such as renewables and robotics, positions it well for continued demand in the coming quarters.
Order Book and New Orders: Potential Challenges Ahead
While ABB India’s order book stood at ₹9,380 crore by December 2024, new orders received during the quarter amounted to ₹2,695 crore. However, the company observed a 14% decline in new orders compared to the same period in the previous year. This decline was partially due to the impact of large one-time orders that had been secured in the corresponding quarter of 2023, which made the year-on-year comparison less favorable.
Despite the decline in new orders, the company remains optimistic about the future, citing its strong order backlog and the sustained demand across its core sectors. Moreover, ABB India’s ability to secure new orders, even with the dip in large one-time projects, suggests that the company’s offerings remain competitive and in demand.
Dividend Announcement: A Positive for Shareholders
In addition to its solid financial performance, ABB India also announced a final dividend of ₹33.50 per share for the fiscal year ending December 31, 2024. This dividend payout, which is subject to shareholder approval, reflects the company’s commitment to rewarding its investors and maintaining a strong financial position. The decision to distribute the dividend highlights ABB India’s confidence in its strong earnings and cash flow generation.
Outlook: What’s Next for ABB India Shares?
At the time of writing, ABB India shares were trading at ₹5,230, reflecting a 3.6% increase from the previous day’s close. Although the company’s strong Q3 earnings and dividend announcement have provided a boost to investor sentiment, it’s important to note that ABB India stock has faced significant volatility this year, with a nearly 25% decline since January.
Investors should keep an eye on the company’s quarterly performance and order book growth in the coming months. Given the continued demand in sectors such as renewables, robotics, and automation, there is potential for further growth in the company’s core segments.
However, some risks remain. The decline in new orders could signal a potential slowdown in large project-based revenue, particularly in industries that have been affected by economic uncertainty. As such, investors may want to balance their optimism with caution and consider the macro-economic environment before making any major investment decisions.
Conclusion: Should You Buy ABB India Shares?
While ABB India stock has faced challenges in 2025, the company strong quarterly earnings and dividend announcement suggest that it remains a robust player in the industrial and power systems sector. The 4% surge in ABB India shares following the Q3 earnings reflects growing investor confidence in the company’s future prospects, despite recent setbacks.
For long-term investors, ABB India shares could present an opportunity to capitalize on the company’s strong order book, robust sector demand, and diversified revenue streams. However, potential investors should weigh the risks of economic slowdown and declining new orders in certain segments when making their decision.
In the short term, those who are already holding ABB India stock may consider holding onto their shares, as the positive quarterly results indicate the potential for further growth. However, for those new to the stock, it may be wise to monitor the company’s next quarterly performance before committing to a buy.
