General information and entertainment, not investment advice. The author is not a SEBI-registered adviser or research analyst. No recommendation, no promised returns. Markets carry risk including loss of capital. Figures may not be current. Consult a registered adviser before acting.
1. Opening Hook
ABB India closed its January–March quarter and management called the results “extraordinary.” On the reported line, they were not wrong. Net profit landed at ₹1,784 crore against ₹475 crore a year earlier. The footnote is where the fun lives: ₹1,541 crore of that was other income, and management confirmed cash without the Robotics-sale proceeds was ₹6,042 crore versus roughly ₹7,600 crore with it. Strip the one-off and operating profit actually fell — ₹408 crore this quarter against ₹560 crore last year. Orders, meanwhile, grew 25%. So the same quarter holds a profit that soared, an operating profit that sagged, and a CFO who twice apologised for the West Asia crisis. Read on.
2. At a Glance
- Revenue ₹3,184 Cr (+5.78% YoY) – Management said they were “well positioned” for ₹3,300–3,400 crore. The West Asia crisis collected the difference.
- Operating profit ₹408 Cr, OPM 13% – Down from 19% a year ago. The margin took the stairs down while the headline took the elevator up.
- Other income ₹1,541 Cr – Versus ₹110 crore last year. The quarter’s hero, briefly visiting from the Robotics sale.
- Reported net profit ₹1,784 Cr – Lifted by other income; the peer sheet still flags quarterly profit variance at -25.2%, because operating profit is the part that pays rent.
- Orders +25%, backlog ₹11,000 Cr – Base orders grew 9%; large orders came from data centre and railway, per management.
- Electrification profitability 21.4% → 15.2% – Copper, silver and a missing big data-centre order, management said.
3. Management’s Key Commentary
Sanjeev Sharma opened with the demand picture. “demand has become resilient, and we are seeing quite a good uptick of it in our books” (Resilient demand, subdued revenue — the two words went to different quarters.)
On the top line, T.K. Sridhar: “Revenue, INR3,184 crores, slightly subdued, I would say.” (“Slightly” doing the gentle work that ₹200 crore of missing revenue requires.)
He then named the culprit: “the last minute topics which we had to deal with on account of the West Asia crisis sort of stifled the offtake as well as the supplies.” (Last year it was tariffs, before that COVID — the calendar always brings a guest.)
He pre-empted the market’s reaction: “I’m sure that this is not in line with the expectation of the market.” (A rare quarter where management and the market agreed on the disappointment.)
On price increases, when pressed for a number: “that’s something which is very sensitive for us to disclose.” (Two hikes confirmed, the size classified.)
On margin recovery, Sharma offered effort over arithmetic: “that’s why we come every morning to our office to make sure that, that happens.” (Attendance is strong; the margin is at 12%.)
And Rahul Gajare’s hope of 18–19% met this: “once we had reached 15% and we have been that and we will be there at 12% is what we ended up last year. So that is actually a good range to be in.” (The aspiration reset itself mid-sentence, from 15% to “12% is a good range.”)
The closing line deserves a frame. Sridhar signed off: “we have some extraordinary results to
