ABB India Q3 2024 Performance: Growth, Sustainability, and Future Outlook

Introduction

ABB India Limited, a subsidiary of the global ABB Group, continues to establish itself as a leader in electrification and automation. With over 75 years of manufacturing presence in India, the company operates across four major segments: Electrification, Motion, Process Automation, and Robotics & Discrete Automation. The company’s Q3 2024 financial results reflect strong revenue growth, profitability, and an expanding order book, reinforcing its industry leadership.

Financial Performance in Q3 2024

ABB India posted robust financial results for the third quarter of 2024, driven by increasing demand for automation and electrification solutions.

• Revenue: ₹2,912 crore, reflecting a 5% year-on-year (YoY) growth.
• Profitability:
  • Profit Before Tax (PBT): ₹597 crore (+23% YoY).
  • Profit After Tax (PAT): ₹440 crore (+22% YoY).
  • Operational EBITA: ₹478 crore (+33% YoY).
• Order Book: ₹9,995 crore, with an 11% YoY increase in orders received.

Segment-Wise Performance

ABB India's diverse business segments contributed to its growth, with Electrification leading the way, while Robotics & Discrete Automation saw a temporary dip due to external market conditions.

1. Electrification

• Orders surged 71% YoY, primarily driven by data centers and railway projects.
• Revenue grew by 11% YoY.
• ABB launched ABB-free@home®, an advanced smart home automation solution to cater to rising demand.

2. Motion

• Orders declined by 26% YoY, but revenue saw a 10% YoY increase.
• Growth in key areas like traction motors, system drives, and renewable energy automation.

3. Process Automation

• Orders witnessed a slight decline, but the company strengthened its service-based revenue mix.
• Significant growth in automation solutions for the metals, energy, and marine sectors.

4. Robotics & Discrete Automation

• Orders declined 35% YoY, mainly due to lower demand in the automotive sector.
• Despite this, a strong pipeline exists for electronics and automotive projects in the future.

Key Business Wins in Q3 2024

ABB India secured major projects across multiple industries, reinforcing its technological prowess and market leadership:

• Indian Railways: Secured contracts for propulsion equipment and composite converters.
• Data Centers: Expanded presence in smart power and distribution solutions.
• Metals & Energy: Won high-value automation and blending projects for industrial clients.
• Automotive Sector: Provided advanced robotics solutions for car manufacturers, ensuring efficiency and precision in manufacturing.

Industry Trends & Growth Drivers

ABB India is well-positioned to capitalize on emerging industry trends and government initiatives that are driving demand for automation and electrification solutions.

1. Renewable Energy Expansion

• India aims to achieve 500 GW of renewable capacity by 2030.
• ABB’s solutions contribute to solar, wind, and battery storage optimization, ensuring efficient energy transition.

2. Electrification Boom

• Rising demand for smart grids, automation, and digital power management.
• Government’s Revamped Distribution Sector Scheme (RDSS) and infrastructure investments boosting sectoral growth.

3. Rail & Transport Investments

• Increased investments in urban mobility, metro projects, and high-speed rail are benefiting ABB’s business in transportation electrification.

4. Make in India Initiative

• ABB is expanding local manufacturing while exporting to over 30 countries, reinforcing India's position as a global manufacturing hub.

Sustainability Initiatives

ABB India remains committed to environmental sustainability, achieving significant milestones:

• Bengaluru facility is GHG-certified, eliminating Scope 1 & 2 emissions.
• Nashik plant received a Platinum rating for green factory standards.
• Ranked 4th among the top 5 sustainable companies in India (as per BusinessWorld rankings).
• Ongoing initiatives include water recycling, zero waste to landfill, and energy efficiency projects.

Future Outlook

Looking ahead, ABB India remains optimistic about sustained growth across its business verticals.

• Continued order inflow from industrial automation, smart power solutions, and digital transformation projects.
• Expansion in high-margin service contracts and export markets, boosting profitability.
• Strengthening automation solutions for data centers, railways, and EV manufacturing.
• Robust cash flow and strong balance sheet, ensuring financial stability and investment capacity.

Conclusion

ABB India’s Q3 2024 performance underscores its strong market position, commitment to innovation, and sustainability leadership. With increasing demand for automation, electrification, and industrial solutions, ABB India is set for long-term growth and industry transformation. As India progresses toward a digital and sustainable future, ABB India remains a key enabler of this shift.