“ABB India’s automation edge: 14% revenue growth, but orders dip — what’s next for investors?”

📊 Q2 FY2025 Financial Highlights - Revenue: ₹3,311 crore, up 14% YoY, supported by backlog execution - Base Orders: ₹3,233 crore, up 13% YoY - Overall Orders: Down 3% YoY, due to timing of large projects - Profit Before Tax: ₹542 crore - Profit After Tax: ₹409 crore 🔍 Key Business Developments - Robotics Division Restructuring: ABB India’s board approved the creation of a wholly-owned subsidiary for its Robotics business, with registered valuers appointed for evaluation - Sustainability Progress: GHG emissions reduced by 87.05% from 2019 baseline - Segmental Strength: Electrification and Motion segments showed resilience, while Process Automation faced margin pressure ⚠️ Investor Watchouts - Margin Pressure: Despite revenue growth, YoY margin contraction due to input costs and competitive pricing - Order Timing Volatility: Large project orders are lumpy, impacting quarterly visibility - Robotics Spin-Off: Valuation and execution risks tied to subsidiary formation - Global Exposure: ABB’s India operations are sensitive to global industrial cycles and automation trends 🚀 Future Growth Outlook - Industrial Automation Demand: Rising capex in manufacturing and infrastructure supports ABB’s automation portfolio - Green Energy Push: ABB’s electrification and smart grid solutions align with India’s renewable energy goals - Digital Twin & AI Integration: ABB is investing in predictive maintenance and AI-driven industrial solutions - Export Potential: India operations increasingly serve global markets, especially in Motion and Electrification