ABB

REVIEW

India (ABB) reported a strong Q4CY24 result with revenue of INR 33.7bn (+22% YoY), EBITDA of INR 6.6bn (+58% YoY) and PAT of INR 5.3bn (+54% YoY). EBITDA margin continued its uptrend to 19.5% for the quarter (+440bps YoY). Note that revenue grew 19%, 24%, 22% and 17% in CY21, CY22, CY23 and CY24, respectively. On the other hand, order inflow (OI) was disappointing in Q4; OI declined 14% YoY and was the lowest in the last eight quarters. Decline in OI was mainly due to motion segment (-30% YoY), which had a large order in ***** backlog (OB) as of Dec’24 was INR 94bn (+12% YoY). We expect order and revenue growth to be subdued in the near term compared to the last three years. Upgrade to HOLD from Reduce with a revised TP of INR 5,302, as we roll forward to CY26E.