Rs 23.80/Share Dividend: This Large Cap Engineering Company Shares Rally Following Healthy Q3 Results

Large cap company, ABB India Ltd witnessed a robust surge of over 9% in its shares on Wednesday, February 21, following the release of stellar financial results for the December quarter. The engineering services company demonstrated a commendable performance, signalling a promising trajectory in the current financial year. The Board of Directors of ABB India also recommended a final dividend of Rs 23.80 per share of the face value of Rs 2/- each for the financial year ending December 31, 2023. ABB India shares declined 4.91% in the last 30 days and surged 42.29% in the last 1 year.

The stock exhibited an upward trajectory right from the opening bell, soaring as much as 8.57% to touch a high of Rs 4,910 apiece on the National Stock Exchange (NSE) during morning deals. Despite trading approximately 1.5% below its 52-week high of Rs 4,984.30 per share reached on January 11, 2024, market sentiment remained buoyant.

ABB India reported a robust 13% rise in net profit to Rs 345 crore for the December quarter, marking a significant improvement compared to the corresponding period last year. The company's revenue also witnessed an impressive upswing, surging by 14% to Rs 2,757 crore for the quarter, further underlining its financial prowess.

Operating on a January-December financial year, ABB India disclosed a full fiscal year profit of Rs 1,248 crore in 2023, a notable increase from Rs 1,026 crore in 2022. Revenues mirrored this growth, escalating to Rs 10,447 crore in 2023 from Rs 8,568 crore in the previous year.

The company's order intake experienced a remarkable 35% surge to Rs 3,147 crore in the last quarter of CY2023, propelling ABB India to achieve its highest fourth-quarter revenue in the past five years. The order backlog, as of December 2023, stood at Rs 8,404 crore, demonstrating a robust 30% year-on-year growth.

Earnings Per Share (EPS) for the last quarter exhibited a positive trend, standing at Rs 16.29 compared to Rs 14.44 a year ago. The cumulative EPS for CY2023 registered at Rs 58.90, reflecting a substantial increase from Rs 48.40 in 2022. This uptick underscores the company's commendable growth in operational profitability.

In a move that pleased investors, the ABB India board proposed a final dividend of Rs 23.80 per share. This follows the announcement of a special dividend of Rs 5.5 per share in the second quarter of 2023. Such dividends add to the allure of ABB India for investors seeking not just growth but also attractive returns.

"Our broad-based growth has come on the back of deepening engagement into diverse market segments and portfolio expansion and localization for the Indian market. "We are grateful for the enduring confidence our customers place in our value-adding electrification and automation products, solutions, and services. Our focus on superior margins and a strategic mix continues to aid in robust cash generation." ABB's Managing Director Sanjeev Sharma said.

The company is optimistic about its future prospects, emphasizing enhanced market penetration and the leveraging of its diverse portfolio. ABB India aims to capitalize on increased economic activities across various sectors, including power transmission, clean energy, railways, metro, public infrastructure, and automation.

As of 12:30 pm on the National Stock Exchange (NSE), ABB India shares continued their upward journey, trading with gains of nearly 8% at Rs 4,872.60 per share. The stock has demonstrated resilience and gained an impressive 43% over the last year, reflecting the confidence and trust investors place in the company's performance and growth trajectory.

ABB is a technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. The company's solutions connect engineering know-how and software to optimize how things are manufactured, moved, powered and operated, according to its official website.