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ABB India Limited reported an all-time high Q2 revenue of INR 3,175 crores, reflecting a 12% year-on-year expansion. The company maintained a robust order backlog of INR 10,064 crores, providing strong revenue visibility for the next 18 to 24 months. Despite this, EBITDA margin for the quarter stood at 13%, which was lower than the previous quarter and the 21% recorded in the same quarter last year, primarily due to specific one-off^📎 impacts.

The decline in profitability was attributed to several factors, including the need to import materials due to QCO guidelines, a one-off^📎 cost of INR 39.5 crores in the Electrification segment, and adverse FOREX volatility where the currency appreciated over 10%, leading to a 4.6% swing in material costs. Management indicated that they are implementing a 'judicious mix' of imported and localized content and focusing on increasing manufacturing and service revenues to shore up margins in the coming six months.

Management observed that the market is currently taking a 'breather' and readjusting its growth trajectory, with large orders being 'missing' in the last quarter. While base orders grew by 5%, there's a general delay in decision-making for larger projects, particularly in private CAPEX, due to global uncertainties. However, the company remains 'cautiously optimistic,' anticipating a pick-up in government CAPEX and growth from emerging segments like energy transition, digitalization, and data centers.

The Electrification segment saw roughly INR 1,400 crores in orders, with base orders growing 9% QoQ, and revenues of INR 1,379 crores, though impacted by import content issues. Motion's base orders remained intact, but large orders were missing, and price realization faced headwinds. Process Automation experienced a slight decline in order backlog (12%) and subdued revenue of INR 500 crores due to postponed decisions. Robotics reported roughly INR 120 crores in orders and an all-time high revenue of INR 236 crores, driven by increasing adoption in manufacturing.

The company acknowledged increased competition, particularly from Chinese manufacturers offering 'unrealistic' prices in heavy industry and Process Automation. Management stated a disciplined approach, choosing not to participate in orders where pricing is 'way out of fundamental expectation' to protect profitability. They emphasized leveraging their local footprint, technology leadership, and value-added offerings to compete effectively and maintain market share.

Over the last 30 years, ABB India has delivered significant shareholder value, with total returns of 8,500%, a 6,745% increase in share price, and 68x growth in market capitalization. The company declared an interim dividend of INR 9.77 per equity share. On the sustainability front, ABB has reduced GHG emissions by 87.5% (from 2019 base), achieved zero waste to landfill at 3 out of 4 campuses, and is nearing its 50% water recyclability target, currently at 41%.