ABB India Q1CY23 PAT lower at Rs245 crore due to extraordinary gains of Rs293 crore in base quarter

ABB India reported 22.50% growth in total sales revenues for the March 2023 quarter on consolidated basis at Rs2,411cr. On a sequential basis, the revenues were absolutely flat. In terms of verticals, ABB India saw revenue growth across all the four key verticals viz. robotics & discrete automation, motion, electrification and process automation.

Even in terms of the operating performance, the profits were higher in all the verticals on a yoy basis. That explains why the operating profits of the company were higher by 41.78% on a yoy basis. However, the fall in net profits was due to Rs293 crore of exceptional gains in the March 2022 quarter. These exceptional gains were recorded on account of the hiving off of the power grids business of ABB into Hitachi Energy India Ltd.

Financial highlights for Mar-23 compared yoy and sequentially

While net profits are lower on yoy basis by -34.4%, this is purely on account of the exceptional gains in the previous year ago quarter. Had it not been for the exceptional gains, the net profits would have actually been higher by over 50% on a yoy basis. A better gauge would be the improvement in the operating margins by 204 basis points to 14.97% in Q1CY23. ABB India follows the calendar year accounting.