ABB India has reported a 13 per cent year-on-year growth in order inflows during the April-June quarter of 2024.
Orders during this period were Rs.3,435 crore as against Rs.3,044 crore in the same quarter of 2023.
In the first half (January to June) of 2024, order inflow was up 14 per cent higher, at Rs.7,042 crore.
As of June 30, 2024, ABB India had an order backlog of Rs.9,517 crore distributed across segments. This provides good revenue visibility, and is well aligned to support growth plans in the coming quarters, a release from ABB India said.
During the quarter, long cycle orders from emerging (e.g. data centers, renewables, electronics, metro & railways) as well as core industry segments contributed to the growth. Most business areas posted a significant double-digit growth in orders. Process Automation had good traction in service orders which partially offset the impact of one-time large metal segment order received in Q2 CY2023.
Key contributors
From the market side, along with power distribution solutions for a large data center, transportation, mobility and automotive segments were the key contributors. Transportation included traction technology orders from railways and metro and automotive primarily constituted robotics solutions for the EV vehicle segment. While minerals and mining seem to consolidate, metals provided traction to the order inflows. There was also solid demand for power distribution equipment from metros in two cities to a metals company, and solar project in Gujarat. Export and service orders enhanced growth with precision equipment export order for a specialized chemical EPC and service order for gas insulated switchgears from energy majors for the quarter. Terminal automation system and blending solutions for energy majors also provided significant business opportunity during the quarter.
Outlook
ABB India is well poised to leverage the projected strong domestic growth in the market with relatively stabilizing commodity prices, robust public investment and resilient private consumption. This is likely to be supported by mildly easing fiscal and monetary policies. The emerging and high growth segments like data centers, railways and metros are likely to provide the required momentum. While energy and metals segment remain growth drivers, some like mining and buildings are experiencing consolidation. Renewables, water and power distribution shall remain as other catalysts of business growth. The government’s continued focus on low carbon technology and energy transition across infrastructure, localization and transportation also augur well for the company’s divisions.
Also read: ABB India sets up a smart center for electrician training
Note: ABB India’s accounting year runs from January 1 to December 31. The period April 1, 2024 to June 30, 2024 is therefore the second quarter (Q2) of its ongoing accounting year (CY2024)
Featured photograph relates to ABB India’s GIS switchgear facility at Nashik in Maharashtra, inaugurated in February 2023.
