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ABB India reported a 3% year-on-year increase in both revenues and profit after tax for Q1 CY25. Revenues reached ₹3,160 crores, while the operational EBITDA margin remained robust at 16.4%. The company maintained a profit before tax margin of 20%, benefiting from a favorable mix of operating leverages and price realization. A positive foreign exchange impact of approximately ₹20 crores also contributed to the financial performance.

Overall orders expanded by 4% year-on-year, with base orders growing by a healthy 10%. The order backlog increased by 11% year-on-year, reaching ₹9,958 crores, providing significant revenue visibility for the coming quarters, with two-thirds expected to be executed soon. Export orders demonstrated strong momentum, growing by 40% year-on-year, reflecting the company's expanding global reach from its Indian base.

The Electrification and Motion segments continue to dominate, accounting for 74-75% of the business. Electrification recorded minimum orders of ₹1,600 crores and a profitability of 25.7%, while Motion achieved ₹1,200 crores in orders and 22% profitability. The company's offerings are composed of 73% products, 13% projects, and 14% services. ABB is actively expanding its portfolio and localizing production, particularly in areas like energy management solutions, modular switches (LIORA), and GIS facilities, to cater to growing demand in Tier-2 and Tier-3 cities.

Management acknowledged that macro uncertainties, including global trade volatility and geopolitical events, led to a cautious approach from customers, resulting in delayed decision-making for large projects. This particularly impacted the Process Automation segment, which saw sluggishness in Q1. While base business remains robust, the recovery of large projects is expected to correlate with the broader CAPEX cycle and improved market confidence.

The company maintains a healthy cash balance of ₹4,700 crores. Management indicated a focus on organic capacity expansion across Process Automation, Electrification, and Motion segments to meet growing volumes. While inorganic opportunities are being explored, the company emphasizes a measured approach, prioritizing value creation and waiting for the right opportunities. Increased dividends were also highlighted as a means of rewarding shareholders.

Profitability is driven by a combination of order margins, productivity improvements, supply chain management, and localization efforts. While some competitive intensity was noted in minor product categories, overall PAT margins are targeted to remain within the 12-15% range. Regarding imports, approximately 70% are attributed to the Electrification and Motion segments, with another 25-30% coming from Robotics, where the local ecosystem for components is still developing.