Tue Nov 05 06:06:48 UTC 2024: ## ABB India Shares Dip Despite Strong Order Backlog
**Mumbai, November 5:** Shares of ABB India, a leading power equipment manufacturer, declined by 5% in early trading today following the release of Q3 results that fell short of market expectations. Despite a healthy order backlog and an optimistic outlook, the company’s earnings missed analyst estimates.
The company reported a 21.4% increase in net profit to Rs 440 crore for the quarter, while total income rose by 5.2% year-on-year to Rs 3,005.05 crore. However, the profit growth was attributed largely to higher other income.
Motilal Oswal Financial Services noted that the order book has shifted towards longer-term projects, contributing to the earnings miss. Nevertheless, they maintained a ‘Buy’ rating on ABB India with a target price of Rs 7362 per share.
Despite the short-term dip, ABB India remains confident in its long-term prospects. The company reported a strong order backlog of Rs 9,995 crore, up 25% year-on-year, providing good revenue visibility for the coming quarters.
ABB India attributed the strong order book to a revival in capex, driven by both public and private sector investments in infrastructure. The company acknowledges the recent economic slowdown but remains optimistic about India’s growth prospects, particularly in infrastructure.
However, the company also highlighted the ongoing West Asia crisis as a potential risk due to its impact on energy prices, freight costs, and supply chains.
**Note:** This news article is based on information provided in the original text and is intended to be a concise summary. It is important to consult multiple sources for a comprehensive understanding of the situation.
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