Strong backlog execution and solid customer-connect led to positive momentum in revenue, Favourable mix & better margin orders shore up contribution, Increase in personnel expense on account of salary revision.
Improved profitability Y-o-Y, margin growth supported by demand, and better capacity utilization
Products consist of 70% of revenues, services- 16%-20%, remaining is contributed by projects.
Exports accounted for 18% of revenues this quarter.
Top risks: raw material inflation, semiconductor shortages, supply chain disruptions, covid wave, forex volatility.
Growth outlook: strong demand in the medium term going forward across the verticals.
Major sectors contributing to Process automation: Mining, Specialty chemicals, Oil, and gas.
ABB expands manufacturing capacity for Low Voltage (LV) motors at its Faridabad facility, powered by renewable energy
High level of demand driving strong order growth with double-digit growth rates in all business areas
Business outlook: High visibility in Renewables, water, and wastewater, logistics, and warehousing.
Govt growth drivers and emerging business areas for future growth: 1.) AMRUT 2.0 approved by Govt. of India, 100% coverage of household sewerage/ septage, universal water supply, >2 crore taps. 2.) GatiShakti launched by Govt. of India will fuel the ₹ 111,00,000 crore ($1.5 tn) National Infrastructure Pipeline (NIP) as announced in Dec’20. 3.) Battery manufacturing: India to need 8000GWh of batteries by 2030, govt incentives to push local Giga factories. 4.) National Hydrogen Mission announced in the Union Budget 2021 and allotted INR 25 crore for R&D. Govt. committed outlay of INR 800 Crores (~$100 Mn) between 2021 to 2024.