Technology leader ABB India has announced its fourth quarter result today, showing a double-digit 15% (YoY) growth in revenue on swift order backlog conversion. According to the company statement, orders grew 17% across products and services, while operating EBITA increased by 37% YoY. The Group also announced the focus of portfolio on digital industries through divestment of Power Grids.

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Citing full year highlights, the company said that total orders grew by 16% YoY, led by infrastructure, transportation and urbanization, as the year 2018 witnessed successes with ABB Ability digital offerings for customers in Indian cement, steel and tyre industries.

Revenues were up 10% YoY on focused portfolio offerings and digital leadership of ABB Ability, as operational EBITA increased by 12% YoY, the firm said, adding that consistent growth in profit after tax (PAT) is at 13% YoY.

Notably, the company board has also recommended full-year dividend of 240%.

On Q4 results for 2018-19, Sanjeev Sharma, Managing Director, ABB India, said, "We have delivered another quarter and year of profitable growth. It has been a year of solid double-digit step-up of fundamentals - orders, revenue, and operating profits creating greater value for all our stakeholders. ABB India enjoys tremendous goodwill with the customers based on its world-class technology footprint. We have a well-entrenched installed base with a good forward visibility in emerging businesses.” 

“The fundamental shift in ABB Group’s business model and go-to-market strategy, led by a strong global management team, towards digital automation, industrial motion and electrical equipment will further improve the speed, agility and subsequent return ratios of the company. ABB India’s commitment to customers and ongoing engagement with growing and newer segments is stronger than ever. We will continue to focus on the multitude of opportunities in a rapidly growing and evolving India,” he added.

Key takeaways of ABB India's Q4 result 
 
1. Orders

Total orders in the fourth quarter of CY2018 grew 17% YoY to Rs 1900 crore across products and services. Full year 2018 witnessed 10% YOY growth in base orders, with total orders up 16% YOY to Rs 6,729 crore.

Transportation continued to be a focus area with orders received for customized ABB traction solutions and propulsion systems for new-age electric locos made in India during the quarter. 

A few examples of widening scope of ABB applications in 2018 include robotics orders for food and beverage packaging, drives for temperature control in buildings and metros, as well as instrumentation and electrification solutions for water distribution for smart cities.

The order backlog as of December 31, 2018 stands at Rs 4227 crore, an increase by 10% YoY, and reflects the strong drivers of the economy and provides support to future revenue development.

2. Revenue and operations

Revenue for the fourth quarter stood at Rs 1,966 crore, up 15% year on year. For the year 2018, ABB India’s revenue grew to Rs 6,690 crore, up 10% YoY on successful execution of the order backlog. 

Commissioning milestones include the compact power distribution substations for the landmark infrastructure project Bogibeel bridge in the north east, technology solutions for temperature control at the world’s tallest Statue of Unity and the electrification of the country’s first inland waterway container handling terminal on the River Ganga. 

During the year, ABB opened two smart factories in Nashik and Bengaluru for power distribution products. 

3. Profit

The Company reported a Profit before tax (PBT) of Rs 202 crore and profit after tax (PAT) of Rs 129 crore during the fourth quarter on improving operating performance. For the full year 2018, PBT rose by 18% YoY to Rs 395 crore. The PAT for the year was Rs 254 crore, an increase of 13% YoY.

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4. Dividend

The Board of Directors has recommended a dividend of Rs 4.8 per share (240%), subject to the approval of shareholders at the forthcoming Annual General Meeting.