PL First Cut – ABB India (ABB) Q3CY23

PL First Cut – ABB India (ABB) Q3CY23 – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

ABB India (ABB) Q3CY23 Results First Cut – Steller performance; beat on all fronts

Result summary

✳️Sales grew 30.6% YoY to Rs27.7bn (PLe ~Rs25.9bn and consensus estimate of ~Rs26bn), driven by growth across segment.

✳️Motion segment revenue grew 11.2% YoY to Rs9.8bn; Electrification grew 18.3% YoY to Rs10.4bn; Process Automation grew 93.1% YoY to Rs6.8bn; and Robotics grew 105.2% YoY to Rs1.2bn.

✳️EBITDA grew 107.9% YoY to Rs4.4bn (PLe ~Rs3.2bn and consensus estimate of ~Rs3.4bn), with EBITDA margins expanding by 588bps YoY to 15.8% (PLe 12.3% and consensus estimate of 13.1%), driven by lower other expenses as % of sales (14.5% vs 17.5%) and lower employee cost as % of sales (6.4% vs 7.4% YoY).

✳️Operational EBITA margin expanded 95bps YoY to 13%.

✳️Adj. PAT grew ~114.5% YoY to Rs3.6bn (PLe and consensus estimate of ~Rs2.7bn), partially aided by higher other income (up 63.9% YoY to Rs768mn).

✳️Order inflows grew 14% YoY to Rs30bn. Order book stands at Rs80bn as on Q3CY23 (0.8x TTM revenue).

✳️At the CMP, the stock is currently trading at 80x/64.5x/53.8x CY23/24/25E. We have an Accumulate rating on the stock with a TP of Rs5,013.