ABB Shares Fall To 10-Month-Low As India Region Orders Decline
India region order growth fell 21%, according to ABB Global's investor presentation.
Shares of ABB India Ltd. fell over 6% on Thursday to hit 10-month-low after ABB Global's India region saw a decline in order growth. The orders in China and Italy also fell in the fourth quarter ended December 2024.
India region order growth fell 21%, according to ABB Global's investor presentation. While China order growth fell 11% due to steep decline in PA and RA, the orders in Italy fell 39%. On the other hand, in Brazil the orders grew by 193% and in Netherlands it was up 107%.
It was not just the regional orders that saw a decline, but also the overall order flow in the fourth quarter decreased by 21%.
There was a discrepancy between the group-wide inflows announced by ABB and the order inflows for ABB India, Renu Baid Pugalia, senior VP of research at IIFL Capital, told NDTV Profit. This is because it excludes export orders and orders from the group.
The decline could suggest that India's inflows are either flat or experiencing a single-digit decline, indicating that the performance in India is weaker than expected, she pointed out.
It’s best to wait for the actual numbers to be released for a clearer picture, said Pugalia.
Orders in the electrification segment grew at a double-digit rate across all regions, according to a press release. The Americas saw an 18% increase, driven by a 21% rise in the US.
Europe grew by 11%, with positive performance across most major markets. The Asia, Middle East, and Africa region saw a 14% increase, with strong growth in countries like India and parts of the Middle East, which helped offset a slight 2% decline in China.
Gross profit increased by 7%, reaching $3,049 million, while income from operations rose 5% to $1,169 million. Ebitda saw an 8% increase, reaching $1,434 million, and the margin improved by 40 basis points to 16.7%.
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ABB Share Price Today
Shares of ABB India fell as much as 6.92% to Rs 5,688 apiece, the lowest level since March 20, 2024. It pared loss to trade 6.80% lower at Rs 5,696 apiece, as of 12:08 p.m. This compares to a 0.45% advance in the NSE Nifty 50.
The stock has risen 29.20% in the last 12 months. Total traded volume so far in the day stood at 3.8 times its 30-day average. The relative strength index was at 29.
Out of 27 analysts tracking the company, 13 maintain a 'buy' rating, eight recommend a 'hold' and six suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 33.9%.
