Record CY 2022 performance; orders at INR 10,028 crore

CY2022 HIGHLIGHTS

• Orders up 4% and backlog up 32% on Y-o-Y basis
• Revenue up 15% across all business areas
• 58% Y-o-Y growth in profit after tax

2022 HIGHLIGHTS

• Orders surged to INR 10,028 crore (gained back pre portfolio demerger volumes)
• Revenue and PAT up by 24% and 93% Y-o-Y respectively
• Solid cash position at INR 3,616 crore
• 5 ABB locations across India - Nelamangala, Peenya, Vadodara, Nashik, and Faridabad certified as ‘Green Factory Buildings’ by the Indian Green Building Council (IGBC)
• ~80% reduction in GHG emission for Scope 1 and Scope 2 over 2019 baseline
• Board recommends full-year dividend of 275%

Speaking on the performance, Sanjeev Sharma, Country Head and Managing Director, ABB India said, “I share ABB India team’s pride to have gained back order volumes to INR 10,000 crore to pre-demerger* level of the portfolio. The profit before exceptional items has grown three times since CY2019 and is a direct result of consistent deliveries with focus on enhanced customer experiences by all our divisions. The Oct-Dec (Q4 CY 2022) quarter has seen growth across multiple market segments and performance parameters, complemented by good execution for domestic market and export customers with responsive service. A substantial build-up of the order backlog will help us sustain the performance momentum.

Our consistent cash build puts us in a strong position to continue our investments to serve customers and markets effectively and prepare for the future. In our ESG commitments, I am happy to announce that we have delivered on reducing our Scope 1 and 2 GHG emissions as compared to the 2019 baseline led by a passionate team across businesses and locations. We have also certified all our factory locations as green factories and realized the Renewable Electricity 100 goal of sourcing renewable electricity with onsite generation and purchase.” he concluded.

*Before the divestment of Power Grids and other businesses

KEY FIGURES INR Crores (for continuing business)

Orders 

ABB India achieved a significant milestone in order booking by reaching INR 10,028 crore in CY2022 and INR 2,335 crore for Q4 CY2022. The growth during the quarter (Q4 CY2022) was led by large value orders in industrial solutions and segments like data centers in Electrification. In Motion, better penetration in segments like railways, metals, rubber and food and beverage and enhanced presence tier 1 and 2 cities spurred growth. Process Automation held steady with opportunities from paint industry and energy companies. Robotics received significant traction in paint orders from automotive and auto component companies.

Key orders during Q4 CY2022 include:

• High power rectifiers for aluminum smelters
• Tool design, simulation, and commissioning of robotics solutions for an Indian auto major
• Largest service order from Motion for supply of synchronous motor for steel major
• MV and LV switchgears, UPS, automatic transfer switching and power distribution packages for one of the biggest data center companies in the country
• Manufacturing, installation and commissioning, of robotics solutions for green field bumper paint line of auto major
• Wind power generators for various wind majors
• Energy efficient drives for diverse applications from oil rigs to steel major
• Distributed control systems (DCS) for greenfield and brownfield paints major
• ABB India continues to have a strong and consistently growing order backlog as of December 31, 2022, at INR 6,468 crore, which provides revenue visibility and is well aligned to support growth plans in the coming quarters.

Revenue and operations

ABB India posted a revenue of INR 8,568 crore for CY2022, the highest in the last five years. For Q4 CY 2022, the Company posted a revenue of INR 2,427 crore with solid double-digit growth across business areas. Seamless execution of a solid order backlog, complemented by higher revenue from export and services and focused supply chain actions contributed to the revenue growth during the quarter and the year. Utilities followed by metals, mining, transport, chemicals, energy, buildings are some of the sectors for the augmented revenue stream.

During 2022, ABB India also announced the expansion of three facilities including one which is first of its kind with collaborative robotics for Electrification Smart Power division. ABB India also expanded Digital Substation Products and Digital Systems factory in Vadodara, Gujarat, which will meet the growing demand for a wide range of digital substation products and digital solutions in India and for more than 50 countries. ABB Measurement & Analytics also opened its first smart instrumentation factory in Bangalore to support the region’s ambition of transforming into a global design and manufacturing hub with precision field devices, converters, etc.

Profit and cash flow from operating activities
For CY2022 profit before tax (before exceptional items and one-offs) was at INR 1,024 crore and the profit after tax was at INR 1,026 crore. The PAT for CY2022 includes an exceptional item of INR 339 crore from the profit on the sale of the turbocharger business. For Q4 CY 2022, profit before tax (before exceptional items and one-offs) was at INR 400 crore, up 83 percent Y-o-Y and profit after tax was INR 306 crore, up by 58 percent Y-o-Y. Volume growth, strong price realizations, cost optimization, and improved revenue mix were key factors which aided growth throughout the year.

The company’s cash position continues to remain robust at INR 3,616 crore at the end of 2022 vis-a-vis INR 2,688 crore in 2021.

Sustainability in practice

In 2022, ABB India Limited achieved ~82% reduction in GHG emission (Scope 1 and Scope 2) for its own manufacturing operation over 2019 baseline. In the fourth quarter, the Vadodara and Nashik locations received Green Factory Building Certification from Indian Green Building Council (IGBC). With this, all the Company’s manufacturing locations are now certified Green Factory Buildings and zero liquid discharge and Single Use Plastic free campuses. Engagements and awareness sessions were conducted with logistics and Supplier partners on climate action. In a milestone achievement in sustainable transportation, the ABB FIA Formula E World Championship debuts in India on February 11^th.

Dividend

Based on the business performance and the potential in current markets, the Board of Directors recommended a dividend of INR 5.50 per share (275 percent), subject to the approval of shareholders at the forthcoming Annual General Meeting.

Outlook

India continues to be a fulcrum of stability with relatively lower inflation rates, stable commodity prices, rising private consumption, and the much-awaited gradual revival of private capex. The various government measures and central bank policies are likely to provide a cushion against global spill-overs of geopolitical dimensions, global trade and forex volatility, and supply chain constraints.

ABB India will continue to be vigilant and deploy suitable hedging tools, leverage global parentage, technology pool and a diversified and deep supply chain to steer growth. The impact of the government’s capital expenditure led recovery schemes and infrastructure focus are likely to continue the momentum in the Company’s identified growth segments including transportation, data centers, electronics, warehousing and logistics, water, renewable, food and beverage, pharma and healthcare, automotive, etc.

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. Building on more than 130 years of excellence, ABB’s ~105,000 employees are committed to driving innovations that accelerate industrial transformation. www.abb.com

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