ABB India Ltd Share Price – NSE /  BSE

Capital Goods - Electrical Equipment, Mid Cap

ABB India has revised the meeting of the Board of Directors which was scheduled to be held on 18 February 2025. The meeting will now be held on 17 February 2025.

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This strategic acquisition aims to strengthen ABB’s position in the growing market for high-powered renewable power conversion technology.

The acquisition will significantly expand ABB's product and service offerings, especially for renewables original equipment manufacturers (OEMs) and end users. It includes key electrical products for power conversion, such as Doubly-fed Induction Generator (DFIG) wind converters, industrial battery energy storage systems (BESS), and utility-scale solar power inverters. The deal will also bring over 100 highly specialized engineers and two converter factories in Madrid and Valencia under ABB's wing, adding around 400 employees to its global workforce, including key personnel in India, China, the U.S., and Australia.

The power electronics business of Gamesa Electric reported revenues of around 170 million euros for the fiscal year that ended on September 30th, 2024.

The International Energy Agency estimates that global renewable capacity additions will continue to increase every year, reaching almost 940 GW annually by 2030 from 666 GW in 2024, based on existing policies and market conditions. Solar PV and wind together are expected to account for 95 percent of all renewable capacity growth through the end of this decade.

The acquisition also aims to increase ABB’s serviceable power conversion installed base with the addition of around 40 GW, leveraging ABB’s global organization to access new service, modernization and repower opportunities. The deep domain expertise of the Gamesa Electric team will also help increase the scope of ABB’s digital offering. In addition, ABB plans to enter into a supply and services agreement with Siemens Gamesa.

Chris Poynter, President of ABB’s System Drives division, said, “This targeted acquisition is in line with our commitments to grow our portfolio for high-power renewable applications and support productivity in a low-carbon world. It will expand our engineering depth for power conversion and grid connection and will add significant opportunity to service a large installed base.

With the acquisition of this business we will be much better positioned to capitalize on the expansion of the power conversion market for renewables while building on our relationship with Siemens Gamesa as a key customer.”

ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation.

The heavy electrical equipment maker’s net profit (from continuing operations) jumped 21.68% to Rs 440.47 crore on 5.16% rise in total revenue from operations to Rs 2,912.16 crore in Q3 CY24 over Q2 CY23.

The scrip slipped 3.14% to Rs 7,415.40 on the BSE.

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ABB India will hold a meeting of the Board of Directors of the Company on 18 February 2025.

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The revenue growth was driven by focused execution of backlog from base orders. The quarter saw strong order momentum long cycle orders increasing presence in the overall basket.

The company's income from Motion revenue was at Rs 1,079.46 crore (up 9.99% YoY), Electrification revenue came in at Rs 1,154 crore (up 10.75% YoY) and income from Robotics & Discrete Automation stood at Rs 111 crore (down 5.93% YoY), Process Automation stood at Rs 596 crore (down 11.83% YoY), during the period under review.

The firm reported a profit before tax of Rs 597.26 crore for September 2024 quarter, up 23.06% YoY.

During the quarter, operational EBITA soared 32.41% YoY to Rs 478 crore. Operational EBITA margin improved to 16.4% in Q3 2024 as compared with 13% recorded in Q3 2023.

ABB India said that it continued to have a strong order backlog as of 30 September 2024 at Rs 9,995 crore, an increase of 25% YoY, which provides good revenue visibility and is well aligned to support growth plans in the coming quarters.

The company’s cash position continued to remain robust at Rs 5,001 crore at the end of Q3 CY24.

Sanjeev Sharma, managing director of ABB India said, “We have delivered another quarter of consistent performance, creating balanced and profitable growth for our stakeholders and deepening engagement with our customers. The quarter was marked by record levels of backlog complemented by a strong book to bill and cash.

The large orders, a marker of economic robustness led by government led capex revival, emerged from diverse sectors like transportation, metals, and even new ones like the data centers. This provides each division the flexibility to leverage opportunities as per their business cycles and bandwidth and entails revenue conversion from a vibrant and varied basket of orders and timeframes.”

With respect to its outlook, the company stated, “India’s rapid adoption of automation, digitalization, and process-driven manufacturing solutions across industries is expected to fuel sustained capex in infrastructure, productivity-enhancing technologies, and localized manufacturing. At the same time, sectors like green energy and value-added exports show resilience and growth potential in the near term. ABB India is well-positioned to leverage these trends, driving innovation and operational efficiency in a dynamic market.

ABB is a leading global technology company. Its business areas include electrification, process automation, motion (drives and motors) and robotics & discrete automation.

Shares of ABB slipped 5.04% to Rs 6,991.60 on the BSE.

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