Stockrabit · Analysts
Questions across 5 calls

T.K. Sridhar

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ABB India Limited

ABB India Limited CC-Nov25.pdf · 2025-11-07
Sumit, I think when I had definitely elaborated more than adequately on the profitability movement segment by segment at an overall level, right? So, I think that is already answered. So, I don't want to repeat it again because that is the same thing. So, now the question is, and as rightly, even in the last calls which we had said, so we are at the lower end of the percentage is what we want to operate in. And we are doing it at a pretty high levels of 15%. That probably registered in the mind as a new normal for quite a few of the markets. But I think we are at the end of the day in an engineering industry. And so we have our cyclical impacts to be handled. Coming back to what are the topics? I don't thin k we don't have any one-off topics other than what we told about the mix, the market dynamics as what we understand, which is more related to the competition scenario playing out on the limited investment decisions what we have, and of course the FOREX and the QCO. So, I don't have anything much more than that. When will we improve or move forward as in this particular journey? Probably I think the QCO should be addressed in another three to four quarters is what we see because that is the timeline what the government has also given. And therefore, I should assume that that is what the time with everyone industry will take. That is how it is. And the balance part is dependent on how the market develops and how private consumption and the investment decisions on the public sector happen. So, that is how we see. And just to give a bit of more color to our answer on this, do we find opportunities drying out at this point of time? No. Yes, the opportunities are there, but the decisions are delayed and the choice of customers today are quite variant. And the only thing , a factor which is probably unknown at this point of time on account of geopolitical topics between, how does it play out is what we need to see, right? So, that is something which is unknown at this point of time and left to the best guess of you guys.
So, Sanjeev, I think we could invite Kiran and Sanjeev Arora on this, because they are reading the market quite stronger for EL and MO or any of 75% of our business. So, I have Kiran over here. Kiran, so you could throw some colour on Electrification and Motion, Sanjeev Arora could throw some colour.
ABB India Limited CC-Jun25.pdf · 2025-08-04
Okay. Good question, thank you. I think this time, being six months, what we had performance, we also definitely would have also looked at the balance sheet, which have been abbreviated that has been published. So, we do have inventories which are high at this point of time, which was roughly INR 1,800 crores to INR 2,300 crores, INR 500 crores. So, we have imported quite a bit of material to meet these compliance requirements and they got probably relaxed as late as last month. And therefore, we expect that we will have to use these imported components to supply in order to gain time and also liquidate these inventories and so, they give you impact as what we see. We have in some of the products, one-year runway up to September 26th is what we need to be ready for that and in some of the products. We will come to know in the months to come. So, as we are preparing for this, we will have to be making sure that we stay committed to the deliveries, what we are given as per the customers . And therefore, we are okay to invest by importing material and using it in the consumption. So, I think in the next six months, we will have a mix which we have to do judiciously in order to ensure that we have a balance consumption between imported and the localized and also the revenue mix in terms of how we do more of manufacturing revenues an d service revenues to shore up the margins.
So, I have the Motion and EL leaders over here. So, the question is, are you going to pass it on to the market the price adjustments?
ABB India Limited CC-Sep24.pdf · 2024-11-05
So, let me take the second question first , Ankur, and then afterwards Sanjeev Arora who leads the Motion business and also the motor specifically will help with more clarity on that. Process automation, if you look at it in the last year two quarters , Q3 and Q4, we had a good uptick of orders from the metals and mining segment , and this year we had oil and gas coming up in the first two quarters, and this particular quarter where we expected some orders from oil and gas as well as metals to come in would come in in the next quarters to come. So, what I want to say is that the opportunity pipeline is strong and vibrant, but it's only the question of decision making how it happens because they are project orders and have the process included, process to follow. In other words, I don't see any concern in sort of opportunity pipeline going up as such . And once these orders fall in place and naturally then it follows an execution timeline that is very defined because we have experts in the field who put that as per the customer requirement or the project requirement. So, overall, I think at this point of time, while you see that there is a bit of a slowness as what you see the charts, but we still find that we definitely have an opportunity to move forward on this. So, over to you where you Sanjeev if could put some light on how the motors market is and what surprising topics what you are facing and sort of stuff.
So, let me take the first question and probably throw some light on the last question as well. Then the middle, second question, if you could repeat it for the benefit of all of us, Umesh.
ABB India Limited CC-Mar24.pdf · 2024-05-13
So, Renu, just to add to what Sanjeev was mentioning, I think we invested almost in the last 2 years, Rs. 180 crores to Rs. 200 crores just on expansion. And that particular effort will continue as we see the demand expanding.
That's a good forward-looking question. So, let me give you a bit of a color on it, while we don't give any forward -looking forecast on it, right? So, if you look at the backlog of Rs. 8,500, so almost 40% of it today is held on long term migration projects, right, both from Railway customers, which we had announced in the last year and also from Process Automation. So, what is basically from EL and MO, right? So, they run on a book-to-bill situation of almost 40% to 50% quarter -on-quarter. So, that's something what they need to book, right? So, these particular orders, whatever you have, so are something which has come from the periods where the material costs were high in which we had priced it to the customers. But whereas subsequently the material costs have softened. So, now the question is, the future prices what we give for the book and bill revenues which we give in the next 2 to 4 quarters for this particular year, shall have to carry a natural adjustment to the current prices and that's how it is. So, therefore, at this point of time, it is not such a way predictable to say that whether the existing backlog would give us and not the same level of margins as what we saw in the 1st Quarter. But as we say that we are, because having come to reach in 12 percentage of profitability last year. So, our endeavor is to make sure that we are there, and we do not fall below that, and while our efforts are there to improve upon it.