ABB India’s share price rose 4.6% to an intra-day high of Rs 5,483.95 after its net profit jumped 56% year-on-year in the quarter ending December. Brokerage house, Motilal Oswal has come out with its initial report on the company. It has a Buy recommendation on the stock price.
Motilal Oswal maintains ‘Buy’ on ABB India
The brokerage firm Motilal Oswal Financial Services has a Buy rating on ABB India. This implies that it sees the quarterly results as better than expectations. According to the brokerage house, the company’s gross margin expanded for the reporting quarter aided by robust demand, stable commodity prices, a hike in prices, and a better product mix. “All business areas posted healthy double-digit growth, driven by better price realization, leverage of higher volumes, and operational efficiencies supported by a favourable mix of revenue and market segments,” said Motilal Oswal.
ABB India’s Q4CY24 results
The company’s net profit for Q4 CY24 came at Rs 528.4 crore, compared to Rs 338.7 crore in the same period of the previous financial year. Its revenue from operations increased 22% YoY to Rs 3,364.9 crore, as against Rs 2,757.5 crore in the corresponding quarter of the last fiscal year.
ABB India’s operating profit or EBITDA rose 57.6% YoY to Rs 657.3 crore in Q4 CY24 over Rs 417.2 crore posted in Q4 CY23. The EBITDA margin expanded to 19.5% from 15.1% YoY.
Also, the company announced a final dividend of Rs 33.5 per equity share, which is subject to shareholders’ approval at the ensuing Annual General Meeting (AGM).
The company follows the financial calendar from January to December.
ALSO READMarkets slip lower. Nifty struggling around 22,900, Sensex down 60 points ABB India’s performance in Q3CY24
The company posted a growth of 21% YoY in net profit at Rs 440 crore for Q3 CY24. The rise in profit can be attributed to higher income. It reported Rs 362 core of net profit for the July-September quarter a year ago. Its total income increased to Rs 3,005.05 crore from Rs 2,846.01 crore in the year-ago period.
ABB India Vs Nifty 50
The share price of ABB India has risen 2.55% in the last one week. It has fallen almost 16% in the past one month and 30% in the last six months.
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