ABBNSEMay 16, 2025

ABB India Limited

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Management on call

Sanjeev Sharma

COUNTRY MANAGING DIRECTOR

T.K. Sridhar

CHIEF FINANCIAL OFFICER

Kiran Dutt

PRESIDENT, ELECTRIFICATION SMART POWER AND SMART BUILDINGS

G. Balaji

PRESIDENT, PROCESS AUTOMATION, ENERGY INDUSTRIES

Subrata Karmakar

PRESIDENT, ROBOTICS

Ganesh Kothawade

PRESIDENT, ELECTRIFICATION DISTRIBUTION SOLUTIONS

Key numbers — 40 extracted

rs,

ABB India followed by Motion, which has drive products, system products, system drives, NEMA motors, IEC LV motors, large motors and generators, Traction and Service. This is all about energy efficie

to you. So, for the January-March quarter, the financial performance is that our orders expanded 4%, revenues expanded by 3%, and profit after tax by 3% on a comparable basis year-on-year. And ou

ary-March quarter, the financial performance is that our orders expanded 4%, revenues expanded by 3%, and profit after tax by 3% on a comparable basis year-on-year. And our cash balance stands at Rs

Rs. 5,756 crore

3%, and profit after tax by 3% on a comparable basis year-on-year. And our cash balance stands at Rs. 5,756 crores. We expanded our portfolio with low voltage flameproof motors in higher frame sizes for IE2, IE3

87%

for our customers. On the sustainability side, we have reduced our Scope 1 and 2 GHG emissions by 87%, comparable to our baseline in 2019. Our Nelamangala campus in Bangalore has achieved Mission t

40%

ents, namely in transport, building and infrastructure, discrete process, and our exports grew by 40% in this quarter. Order backlog is up by 11% and Rs. 9,958 crores. That gives us a very good visib

11%

astructure, discrete process, and our exports grew by 40% in this quarter. Order backlog is up by 11% and Rs. 9,958 crores. That gives us a very good visibility going forward for the revenues that we

Rs. 9,958 crore

re, discrete process, and our exports grew by 40% in this quarter. Order backlog is up by 11% and Rs. 9,958 crores. That gives us a very good visibility going forward for the revenues that we have planned for ye

e you granularity, India is the second largest cement producer in the world and accounts for over 8% of global installed capacity. Cement volumes are increasing by 6% to 7% year-on-year. And as of

the world and accounts for over 8% of global installed capacity. Cement volumes are increasing by 6% to 7% year-on-year. And as of 2024, India's green cement market is valued at approximately US$2.3

rld and accounts for over 8% of global installed capacity. Cement volumes are increasing by 6% to 7% year-on-year. And as of 2024, India's green cement market is valued at approximately US$2.31 bill

2.31 billion

6% to 7% year-on-year. And as of 2024, India's green cement market is valued at approximately US$2.31 billion and is projected to grow at CAGR of 5.85% through 2029. We have a lot of offerings here. And th

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Guidance — 20 items

Sanjeev Sharma

opening

“That gives us a very good visibility going forward for the revenues that we have planned for year 2025.”

Sanjeev Sharma

opening

“For an integrated energy measure, we have supplied SCADA and PLC for a major offshore project.”

Sanjeev Sharma

opening

“And as of 2024, India's green cement market is valued at approximately US$2.31 billion and is projected to grow at CAGR of 5.85% through 2029.”

Sanjeev Sharma

opening

“And in supplier engagement, we are increasing and we will be training our suppliers to be also focused in this particular area.”

Sanjeev Sharma

opening

“Our CSR activities, be it climate change module for teachers, developing an external road project to make sure that the communities around the industrial areas have a more safer access to their locations and the children, the women, they can walk around in a much more safer environment, well-lit roads, well carved out roads, and there is no mixing of traffic with the pedestrians.”

Sanjeev Sharma

opening

“Green school campus programs, then skilling 400 youth across locations, aiding and modernizing the hospitals in Nelamangala which we handed over, and of course special health camps including assistive devices distribution across locations for specially abled people, and also sponsoring a project in Himalayas wherein it helps waste collection and recovery center because a lot of tourists bring a lot of stuff which cannot be left in, plastic cannot be left in the hills.”

T.K. Sridhar

opening

“The order backlog 9,958 gives us a good visibility of what could get executed and for the future revenues, two-thirds of it will get executed in the coming quarters, and the balance will go to the next year based on the project schedules and the long-term service order what we have for traction converters in the years to come.”

T.K. Sridhar

opening

“They were slightly lesser, but having said that, we are clear that as the volatility topics cease down, so they should also pick up going forward.”

T.K. Sridhar

opening

“1,100 crores every quarter, and that should slightly go up going forward as the backlog starts to execute itself from the project orders which is there, and profitability remains solid at 22%.”

T.K. Sridhar

opening

“Robotics and Discrete Automation, large order from an electronics sector, so helped up shore up the orders, and this was also something which we expect in the last quarter, but firm and effective by in this quarter.”

Risks & concerns — 10 flagged

So, revenue is 3% up, and this was more because the market was a bit volatile.

— T.K. Sridhar

And as I was mentioning, due to the volatile factors which were there, which were hovering in the market, there was a bit of a cautious approach which were taken by the customers in the core segment and that resulted in decisions getting delayed, number one.

— T.K. Sridhar

There is no opportunity decline in the market, but it is more definition of decision making which is slightly moving up the quarters as we go forward.

— T.K. Sridhar

But what we saw in TA in the last quarter with respect to orders getting postponed from customers and execution, does that phenomena concern you in terms of the likely execution for this year that we missed it from double-digit growth to single-digit or flattish execution this year or bottom we have fair amount of confidence that double-digit revenues growth trend should be in tact?

— Renu Baid Pugalia

So, it's difficult to say what happens at end of the year.

— Sanjeev Sharma

and also now the recent weak event, so there are a lot of events which are playing out in the minds of our customers.

— Sanjeev Sharma

Whether it happens in the running quarter or it happens in the next quarter is difficult to say, but we are very optimistic going forward that we will have reasonable rates of growth in this market for us.

— Sanjeev Sharma

So any benefit you are getting on export because this quarter growth has been strong and an impact of the global trade friction which is currently going on in the US?

— Parikshit Kandpal

So, these things had to play out and for a company like us or rather simple people like us who just look at the customers when they are going to decide orders, it is difficult to decide for how that will play out on our portfolio.

— Sanjeev Sharma

Do you think there is a risk of this year being 10% or less growth in orders?

— Amit Mahavar

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Q&A — 10 exchanges

Thank you. Good morning, team. My first question is, Sanjeev, you did mention that macro is not looking so exciting, but you are focusing more bottom-up. But what we saw in TA in the last quarter with respect to orders getting postponed from customers and execution, does that phenomena concern you in terms of the likely execution for this year that we missed it from double-digit growth to single-digit or flattish execution this year or bottom we have fair amount of confidence that double-digit revenues growth trend should be in tact? That's the first question.

Sanjeev Sharma

Thank you, Renu. So in our view the Process Automation business represents largely the project business, which is about 10% of our total portfolio. And they do depend upon how the customers feel confident in the process industries as well as in the large government infrastructure projects, say, in the oil and gas and the other power generation area. So there, many projects which were on pipeline are still on the pipeline, but because of the uncertainties which are floating across the world and also domestically, certain customers held back the decisions. And we do believe those projects are st

Hi, sir, thank you so much for the opportunity. Sir, industrial, the process automation business is showing a weakness in terms of negative growth for the last three quarters. So, when do you think we will be able to come back on the growth path in this segment?

Sanjeev Sharma

Thank you, Mahesh. So, as far as when we talk about ABB present in this market with 18 divisions and 23 market segments, so we are the true reflection of what the market is doing. So, what we do is, when the market and the customers that we are trying to serve, they are ready for decisions, they show up in our books. So as I said, process automation is 10% of our large projects of the process automation is 10% of our portfolio. And largely we have fast-moving industrial goods. So that base order continues to perform well, because the country is expanding and is absorbing those products quite e

Thank you, sir. Sir, just wanted to have a color on this chart of high, moderate, low, what we give every quarter. So, how do we read into this? When we see quarter-on- quarter changes in couple of sectors moving to moderate, what is the view we take? Is it a quarterly view we take or yearly view we take on the sector and then we move that segment to moderate from the low?

Sanjeev Sharma

So, that's an interesting question. So, one is that this particular picture is both for our internal as well as external consumption. Internally, what we do is we make sure that all our sales team and businesses are laser focused on all these segments in the low, medium and high, because that's where the capital formation takes place and the serviceability offers have to be very high, both on the sales side and also post order side. So, that's one part. And on the second side, we look at it from a kind of a holistic trend that these particular market segments are relevant for us for long-to-me

Good afternoon, sir, and thanks for the opportunity. My first question is on the motor side. As per the annual report, the penetration of IE3 and IE4 was 54%. What was this number for CY '23? And what will the market share in IE3 and IE4 motors?

Sanjeev Sharma

So, Mohit, actually it is a very good question. I am also interested in those numbers, but today Sanjeev Arora is not here. He is travelling. He is responsible for that business. We may not be able to give that answer immediately plus we typically don't go to that granularity of information because it's very sensitive to business. Sir, any color on the order’s number for CY '23. CY '23 versus CY '24, that 54%, how does this compare? As Sanjeev was mentioning, we don't give those numbers. Otherwise, then we will have a different set of calls. Or if you can next time, you can bring as a base ref

Sir, hi, congratulations on a decent number. My first question is given slight sluggishness in the market and the muted growth, so how are the prices for the products holding on? So, have you seen any price cut or has the competitive intensity increased?

Sanjeev Sharma

Well, generally, on an overall basis, you are right, there is a bit of sluggishness in the marketplace, more specially on the large project side, I would say. In certain product categories, of course, there is an increased competitive intensity. Whenever there is an increased competitive intensity, you will see an effect on the prices, price realizations. But I would say that is on the minor side of the portfolio. I would say the main story is that the large projects which are being held back, they should be released in coming quarters. That's something we watch, and we are working with the cl

Hi, sir, good morning. My first question is pertaining to exports and services. So, if I look at your trend as a percentage of contribution from exports and services, it is the remaining range bound with a range of about 10% to 14% since the last few quarters. So, how do you see a pick up happening here? Whether your install base can lead more of a big in the services business for you in the medium-to-longer term? And would there be any change in strategy from parent side as well in terms of supply dynamics so that you can have better traction on the export side?

Sanjeev Sharma

So, a growth of 40% on export side, I believe, is quite a healthy growth. And this is something which is available. When we talk about percentages, as long as the domestic market growth is strong, then the percentages of export even after 40% growth look nominal, right? So, that’s what as far as the domestic side is stronger, the percentages will continue to be playing out that way, but we are quite happy in terms of how our export markets are developing. As far as the group is concerned, yes, our prime focus is on Indian market being a multinational corporation present in India. But given the

Hi, gentlemen. Congratulations on a great set of results considering the environment. Just a question on the stickiness of the electrification segment margins. When I look at it from a recent quarterly perspective or even from an annual perspective drawing on information from the annual report, just could you help us connect the dots in terms of while the last two quarters order inflows for this segment have sort of moderated and the base quarters are sitting with large project orders, that coupled with a higher or let's say, no deterioration or the foreign exchange used or the import content

Sanjeev Sharma

So as you know, Jonas, the profitability is a net result of multiple factors that flow through order margins and then how productivity measures that we do within our location and that's where a lot of investments go. So, every year our units are more productive than previous years. Plus, how we manage our supply chain, our suppliers, that's another factor. And also how we are kind of localizing continuously our portfolio. So, it's a combination effect that comes. And sometimes it is largely aided by margin realization, and at times it is realized by the supply chain realization, and sometimes

Hi, Sridhar and Sanjeev. Good morning and congratulations on stable profitability. I just have one question, sir. You know, the outlook for CY '25, particularly on base orders, can you throw some light on some high growth segments, particularly propulsion, semi-acid propulsions, and renewable low voltage and motion orders? Do you think there is a risk of this year being 10% or less growth in orders? That's my question.

Sanjeev Sharma

You are talking of base orders, right, if I am not wrong? Yes, sir. So, it is very difficult to predict. Let me be very honest. Because given the Amban situation, lot of moving parts at this point of time, which one would never have expected, so naturally, so then at this point of time, Amit, we are not able to even say that whether it will grow at 10% or less than 10% is what we see, right? But our intent has always been to be aiming for double-digit growth, right, and then be in line with what the market could sort of decide as a result of these particular macro factors which is beyond our c

Thank you everyone for the opportunity. I wanted to get a sense from you across your segments of the level of sophistication of the product as you suggested on the call. I wanted to understand, A) in which segments is it driving our margins up because on a relative basis we are fairly strong? And B) from here on, have you seen the customers, internationally, which all segments can incrementally benefit as the customers further moves in this direction?

Sanjeev Sharma

So, if you go back to the slide where we have these 18 divisions coming across 23 market segments, the margin accretion would definitely be very attractive in the first sector where we are growing faster because that's the place where technology plays a differentiating factor to quite a large extent and where the speed of execution is also important. And also new solutions are very relevant in those particular market segments. Therefore, the margins there would definitely be at this point of time attractive for the reason is because they are also starting from a lower base and trying to set up

Thank you. Thank you very much once again on behalf of ABB for taking time out to understand what's happened in Q1, 2025 and definitely look forward to interacting with you more and more and as we go into Q2, 2025 and also the other macro factors as what we see today sort of ease out and it becomes a more level playing field for all of us. So, thank you very much for joining the call, and thanks to the ABB Management also who could take time out to listen in and also to answer appropriately to the investors. Thank you very much.

Management

Speaking time

Sanjeev Sharma

Moderator

T.K. Sridhar

Renu Baid Pugalia

Mohit Kumar

Jonas Bhutta

Amit Mahavar

Subramaniam Yadav

Parikshit Kandpal

Umesh Raut

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Opening remarks

T.K. Sridhar

Thank you, Ryan. Very good morning once again to all of you. Thanks for joining the Q1 2025 Call. So, along with me on the call is Mr. Sanjeev Sharma – the Country Managing Director. And we have Kiran Dutt and Ganesh Kothawade who lead Electrification Division. And then we have G. Balaji, who leads Process Automation and Subrata Karmakar of Robotics. Sanjeev Arora could not join this call as he is travelling, but therefore we will handle the queries relating to motion by ourselves. Okay, so over to you, Sanjeev.

Sanjeev Sharma

Thank you, Sridhar. Good morning to all of you for joining us to know more about January to March 2025 quarter. This is our first quarter of CY2025. Just to give you a glance about how we are structured as a company we operate with the four business areas, namely electrification, which all deals with the distributed solutions, which distributes electricity in large cities, industrial complexes, large infrastructure projects, be it commercial buildings, tunnels, and residential buildings. Then we have the products which go into the manufacturing, which is the installation products, which are kind of add-on products to the industry. Electrification portfolio is quite full, and it's the largest business area for us at ABB India followed by Motion, which has drive products, system products, system drives, NEMA motors, IEC LV motors, large motors and generators, Traction and Service. This is all about energy efficiency and mobility-based solutions. Process Automation which caters to energy

T.K. Sridhar

Thank you, Sanjeev. So, we get into another interesting part of how did we perform in Q1, '25. Right. Base orders grew by 10%. This is despite the fact that we also had a large order in the last quarter, and we could make it in this quarter as well. What's more encouraging is to see the base order is growing while the large order is definitely something which come as per the CAPEX cycle. So, this is something which is a healthy part of it. If I remember correctly, the market was concerned in the last quarter in 2024that why were the orders not growing? And we did say that one of the orders were delayed, and it may go into Q1, '25 and that's the result why we could see a large order of Rs. 200 crores which is there for the particular quarter. The order backlog 9,958 gives us a good visibility of what could get executed and for the future revenues, two-thirds of it will get executed in the coming quarters, and the balance will go to the next year based on the project schedules and the lo

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