Tue Nov 05 08:02:45 UTC 2024: ## ABB India Shares Dip on Cautious Outlook Despite Strong Order Backlog
**MUMBAI, INDIA -** Shares of ABB India fell over 5% on Tuesday after the company’s management issued a cautious outlook on future order inflows and execution challenges during a post-earnings call. While the company reported a healthy order inflow range between Rs 2,500 crore and Rs 3,000 crore for the quarter, reaching the Rs 4,000 crore mark remains a challenge.
Despite an 11% year-on-year increase in order inflows, reaching Rs 3,342 crore, management noted a slower conversion rate from order booking to revenue, attributed to the larger size of recent orders. These large orders, primarily from sectors like metals, mining, oil & gas, transportation, and data centers, require extended timelines, impacting revenue realization.
However, the company remains optimistic about growth over the next three to four quarters, fueled by the execution of base orders.
ABB India’s management also acknowledged challenges within its Low Tension Motor segment, which has been facing pricing pressures. While revenue has been impacted, the erosion seems to have stabilized, and new investments are flowing in, suggesting a potential rebound.
Despite these challenges, ABB India reported a 272 basis point expansion in its EBITDA margin compared to the same quarter last year, highlighting operational improvements amidst market headwinds.
While the stock has delivered mixed returns over various time frames, with a negative return of 9.77% over the last month and a 1% increase over the past six months, ABB India shares have surged by 49.50% year-to-date, highlighting its positive trajectory in the current calendar year.
Investors are advised to consult qualified financial advisors before making any investment decisions.
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