Abb India Limited · NSE:ABB
Abb India — Q1 2024 Earnings Presentation
24 slides from Abb India's earnings presentation, May 10, 2024
Slide 1: Presentation to Analysts cover letter
REF:INABB:STATUT:LODR:R30:ANLST-PPT: May 10, 2024 BSE Limited P.J. Towers Dalal Street Mumbai 400 001 (Attn : DCS CRD) National Stock Exchange of India Ltd Exchange Plaza, 5th Floor Plot No. C/1, G Block Bandra-Kurla Complex, Bandra (E) Mumbai 400 051 Dear Sirs Sub: Presentation to Analysts Ref: BSE
Slide 2: Q1, 2024 results
— BENGALURU, INDIA | MAY 13, 2024 | SANJEEV SHARMA, CMD & TK SRIDHAR, CFO Q1, 2024 results Solid start for the year – strong growth in orders & revenues, margin expansion with cash accretion ABB India Analyst Call | Q1 CY2024 | January – March 2024 © 2022 ABB. All rights reserved.
Slide 3: Important notices
— Important notices This presentation includes forward-looking information and statements including statements concerning the outlook for our businesses. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including
Slide 4: ABB in India at a glance
— — ABB in India at a glance ABB Group ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company’s solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered, and operated. Bui
Slide 5: Business highlights
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Slide 6: Q1 2024 highlights
— Q1 2024 highlights Orders +15%1 underlining the success of ABB India’s multi-division portfolio Revenue +28%1 driven by a strong backlog & conversion from book-to-bill PAT +87%1 due to capacity leverage and cost optimisation Robust cash position at INR 5,036 88% reduction in greenhouse gas emissio
Slide 7: Positive market momentum across segments
— Positive market momentum across Orders (+15%)1 INR crores segments 80% 3,607 4,000 3,125 3,044 3,004 3,147 3,500 Orders 60% 2,767 2,634 3,000 Healthy mix of short and long cycle opportunities 2,291 2,335 2,500 40% 2,000 Export 1,500 Orders +23%1 20% 1,000 500 0% 0 Discrete Q1/22 Q3/22 Q1/23 Q3/23
Slide 8: Proven capabilities leading to significant wins
— Proven capabilities leading to significant wins Compact substations, smart power Robotics solutions for primary, secondary System Drives order for a global metal products, MV switchgear for a large data and end of line packaging solutions major product manufacturer center project for F&B segment R
Slide 9: Continuous customer engagement
— Continuous customer engagement Diverse segments, deeper coverage Value Provider Conference Retailers Meet in Bangalore & Technology Day for cold storage by Robotics Navi Mumbai by Electrification industry, Aligarh by Motion Smart Power and Smart Building Technical Seminar for steel Service Camp fo
Slide 10: Diverse businesses catering to 23 market segments
Diverse businesses catering to 23 market segments Focus Enhance Sustain Data Centers Renewables Textile Railways & Metro Automotive Marine & Ports Electronics Warehouse & Rubber & Plastics Logistics Metals & Mining Water & Wastewater Oil, Gas and Building & Chemicals Infrastructure Pharma & Healthca
Slide 11: Theme for the quarter: Buildings & Infrastructure deep-dive
— Theme for the quarter Buildings & Infrastructure: a deep-dive Segment Insights Key Drivers & Trends • Buildings & Infrastructure Industry in India expected to reach • Need for Affordable Houses: By 2030, more than 40% of our $1.4 Tn in medium term at a CAGR of ~9% population expected to live in ur
Slide 12: Sustainability in practice
— Sustainability in practice Tracking our green goals: Q1 FY24 progress By 2024 By Q1’24 (plan) (actual) Scope 1&2 GHG Emissions* 88% 88%* Water recyclability ~45% ~37% Water positive unit 4 3 Zero Waste to Landfill unit 2 1 (No.) * Compared to 2019 baseline and all figures are on a cumulative basis
Slide 13: Care: Performance with Purpose
— Care: Performance with Purpose Focus on local development, education, diversity & inclusion, and healthcare for communities Phase-2 Nelamangala rural Science competitions for Special school to mainstream Inauguration of the road infrastructure National Science day 2024 children with special needs
Slide 14: Summary: Aligning with India's growth and global shifts
— Summary Aligning with India’s growth and global shifts Domestic demand and elections Energy access and transition Cautiously optimistic – in short run, moderation Energy demand expected to grow by ~50% over next expected especially in large capex & channel spend decade; est. 2/3rd of India’s energ
Slide 15: Financial highlights
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Slide 16: Performance Overview Q1 2024
— Performance Overview Q1 2024 All figures in INR Crores First time – Revenue crosses INR 3000 Cr, PAT 15%, Cash 5k+ Cr Key Highlights • Orders: Momentum in base orders Full year Actual Actual Actual Change vs Change vs continued. Large value orders received Performance Indicator 2023 Q1 23 Q4 23 Q1
Slide 17: Demand vs Supply
— Demand vs Supply Growth for ABB in India is 15% while for ABB Group it is 5% Fig in MUSD @ 1 $ = 83.02 INR Orders originating from India (Demand view as per Group) Orders as reported by local entity (Supply view relevant for ABB India Ltd) Q1/24 Q1/23 Change Q1/24 Q1/23 Change % % 3rd Party ABB In
Slide 18: Financial summary
— Financial summary Q1 2024 vs Q1 2023 Other income: 87 Cr (72 Cr) Major component is Interest on fixed deposits – 83 Cr for the quarter vs 56 Cr prev year Material cost: 59.8% (63.7%) • Revenue mix especially higher service & exports • Localization, SCM savings • Better margin orders from backlog P
Slide 19: Electrification
— Electrification INR crores (+34%) (+30%) 1,791 1,296 Orders Received 1,130 • Growth from data centres, smart building 1,335 999 1,006 1,042 1,100 • Tier 2/3, OEMs expansion 1,032 1,037 • Installed base opportunities Orders Revenues Received Revenues • Seamless backlog execution of system & Q1/23 Q
Slide 20: Motion
— Motion INR crores (-3%) (+4%) 1,417 1,400 Orders Received 972 981 1,013 1,216 1,181 917 915 • Decision on system orders slightly delayed 1,126 • Price pressure of standard products Orders Revenues Revenues Received • Steady backlog leading to a stable growth Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/
Slide 21: Process Automation
— Process Automation INR crores (+17%) (+73%) 726 Orders Received 784 676 631 • Orders from power, metal, logistics 695 510 529 541 463 420 Revenues Orders Revenues • Higher execution of order backlog Received • Continued contribution from services and exports Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/
Slide 22: Robotics and Discrete Automation
— Robotics and Discrete Automation INR crores (-3%) (+60%) 123 Orders Received 118 156 108 109 • Strong inflow from automotive sector, 152 electronics 116 68 61 57 Revenues Orders Revenues • Execution of industry & automotive orders Received from backlog Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q1/23 Q2/23 Q3/
Slide 23: Resilient and diversified business model (by revenues)
— Resilient and diversified business model (by revenues) Segment Offerings 3% 3% 4% 9% 14% 10% 17% 23% 21% 13% 14% 16% 40% 32% RA 36% Projects PA 78% 71% 76% Services MO Products 40% 41% 40% EL Q1/23 Q1/24 CY/23 Q1/23 Q1/24 CY/23 Channels Geography 9% 11% 9% 9% 8% 10% 11% 9% 10% 44% 40% 41% OEMs EPC
Slide 24: May 10, 2024 Slide 23
May 10, 2024 Slide 23