Tue Nov 05 06:44:23 UTC 2024: ## ABB India Poised for Strong Q3 Results: Brokerages Expect Revenue Surge and Margin Expansion
**Mumbai, November 1, 2023** – ABB India is set to report a robust Q3 performance, with analysts predicting a significant revenue increase and margin expansion driven by strong order flows and strategic investments in new areas.
The company, which follows a January to December financial year, is expected to announce its Q3 results on November 4. Brokerages anticipate a 17% year-on-year (YoY) rise in revenue to approximately Rs 3,243.1 crore, fueled by robust order inflow, strong execution in the Motion & Electrification segment, and growth in new areas.
Net profit is projected to rise 10% YoY to Rs 483.3 crore, with an EBITDA margin expanding from 15.8% in Q3FY24 to 18.2% in the current quarter.
Analysts attribute this positive outlook to ABB India’s focus on energy-efficient and premium products, its presence in high-growth industries, and a robust domestic order pipeline.
“ABB India’s prospects remain strong driven by increasing demand for its products, its focus on high-growth industries, and a robust domestic order pipeline,” notes Prabhudas Lilladher, which has an ‘Accumulate’ call on the stock. The brokerage anticipates a revenue CAGR of approximately 22.6% over CY2023 and 26E.
Key factors driving ABB India’s strong performance include:
* **Strong order flow:** Most brokerages remain positive on the stock due to strong order flows, particularly in the private sector, transmission, railways, data centres, and PLI-led spending.
* **Improved product mix and localization:** Nomura analysts expect the margin to sustain above 18% due to improved product mix, higher capacity utilization, increasing localization, and moderation in commodity prices.
* **Expansion and investments in new areas:** ABB India’s strategic investments in new areas, such as data centres, electronics, warehouse/logistics, railways/metros, etc., are driving growth and operational efficiency.
While most brokerages are optimistic, Nuvama remains the most pessimistic, projecting revenue at Rs 3,076.3 crore, net profit at Rs 425 crore, and an EBITDA margin of 17%. Conversely, Motilal Oswal Securities provides the most optimistic estimate, predicting revenue of Rs 3,429.2 crore, net profit of Rs 539.1 crore, and an EBITDA margin of 19.2%.
Investors will be keenly watching ABB India’s Q3 results for insights into its order outlook and the company’s expansion plans in new areas.
**Disclaimer:** This news article is based on information from various sources, including brokerages and financial news platforms. It is for informational purposes only and should not be considered investment advice.
First Piper 