REF:INABB:STATUT:LODR:TR_CONCAL: | February 21, 2022 |
BSE Limited
P.J. Towers
Dalal Street
Mumbai 400 001
(Attn : DCS CRD)
National Stock Exchange of India Ltd
Exchange Plaza, 5th Floor
Plot No. C/1, G Block
Bandra-Kurla Complex, Bandra (E).
Mumbai 400 051
Attn: Listing Dept.
Dear Sirs
Sub: Transcript of Analyst concall
In continuation to our letter dated February 10, 2022, wherein we had enclosed a copy
of presentation made at the Analysts Call scheduled on February 11, 2022, we now
hereby enclose a copy of the transcript of conference call with analysts, which took
place on February 11 , 2022 post announcement of Q4 2021 results of the Company.
The said transcript is also uploaded on the Company's website.
Thanking you
Yours faithfully
F ABB India Limited
Trivikram Gu
Company Secretary and Compliance Officer
ACS 17685 | V | |
Encl: as above |
ABB India Limited | CIN | : L32202KA1949PLC032923 | www.abb.com/in | ||||||||||||
Registered and Corporate Office | |||||||||||||||
GST | : 29AAACA3834B1Z4 | ||||||||||||||
Disha - 3rd Floor, Plot No. 5 & 6, 2nd Stage | |||||||||||||||
Peenya Industrial Area IV | Phone | : +91 | 80 2294 | 9150 - 54 | |||||||||||
Peenya, Bengaluru - 560 | 058 | ||||||||||||||
Fax | : +91 | 80 2294 | 9148 | ||||||||||||
Karnataka, India |
"ABB India Limited Q4 CY21 Earnings Conference
Call"
February 11, 2022
MANAGEMENT: MR. SANJEEV SHARMA - MANAGING DIRECTOR, ABB
INDIA LIMITED.
MR. T K SRIDHAR - CHIEF FINANCIAL OFFICER, ABB
INDIA LIMITED.
MR. SANJEEV ARORA - MOTION, ABB INDIA LIMITED
MR. G. BALAJI - PROCESS AUTOMATION, ABB INDIA
LIMITED.
MR. KIRAN DUTT - ELECTRIFICATION, ABB INDIA
LIMITED.
MR. SUBRATA KARMAKAR - ROBOTICS & DISCRETE
AUTOMATION, ABB INDIA LIMITED
Page 1 of 17
ABB India Limited | |
February 11, 2022 | |
Moderator: | Ladies and gentlemen, good day and welcome to ABB India Limited Q4 and Full Years CY21 |
Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, | |
and there will be an opportunity for you to ask questions after the presentation concludes. Should | |
you need assistance during the conference call, please signal an operator by pressing "*"then | |
"0" on your touchtone phone. Please note that this conference is being recorded. Please note that | |
unauthorized recording of this call is strictly prohibited. The recording will be made available | |
on the company's and SEBIs website subsequently. | |
I now hand the conference over to Mr. TK Sridhar - Chief Financial Officer of ABB India | |
Limited. Thank you and over to you sir. | |
TK Sridhar: | Thank you, Margaret, and very good morning to all of you. It's a bright sunny day in Bangalore |
as I sit in my Disha Office in Peenya. So, welcome to the Q4 2021 and the Full Year Result Call | |
with all of you. | |
So, we have absolute pleasure in discussing these topics as every quarter. Along with me in the | |
room, I have Mr. Sanjeev Sharma - MD of ABB India Limited, Sanjeev Arora, who leads the | |
Motion business for India, Subrata Karmakar, the Head of Robotics business, Kiran Dutt who | |
represents Electrification Products and also Balaji who represents Process Automation. | |
Without wasting much of time, I hand over to Sanjeev to take us through what happened in Q4, | |
the full year and also how we see going forward in 2022. Over to you Sanjeev. | |
Sanjeev Sharma: | Thank you Sridhar. Good morning to all of you. Let me also acknowledge that apart from our |
divisional managers who are present that is Sanjeev Arora, Kiran Dutt, Balaji for Process | |
Automation and Subrata Karmakar for Robotics. This time, we have also invited in a listen-in | |
mode all our division managers, we have 18 divisions in the country. So, all division managers | |
are also present in the listen-in mode for us because as you all know, ABB is a company in India | |
which has 18 distinct divisions and sum total of all these divisions performance, is presented to | |
you as a cumulative result of ABB India. | |
Coming to business highlights. We have been investing in the smart factory and the | |
manufacturing excellence over a period of time. And we have seen substantial productivity gains | |
in our factories by employing robotic solution and also squeezing the space that is required to | |
produce. For example, in our Nelamangala factory, we were able to use the same space, reduce | |
the footprint of our manufacturing by 30%, but increase the manufacturing by 30%. So, there's | |
a huge gain of productivity. Recognizing that and many other initiatives taken by our teams, | |
Frost and Sullivan gave ABB India an award for Smart Factory and Manufacturing Excellence. | |
This is something which we believe in strongly and we will continue to invest in all our locations | |
and factories as and when the opportunity comes up for upgrades. | |
We won a large order for automation system for a second largest lube plant globally. This is one | |
of its kind order and is something we have started into a new segment, wherein new technology |
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ABB India Limited
February 11, 2022
is being brought with ABB India and ABB France coming together, to deliver this very complex, but at the same time, something which we are very versed with globally in technology and much of it will be executed in the country. This is something we are proud of and we believe that this will have a multiplier effect going forward. We also flagged off our energy efficiency movement, highlighting the importance of energy efficiency in industrial world. This is a sweet spot portfolio of ABB at this point of time as whole world wants to make sure that their assets are energy efficient, infrastructure is energy efficient, and are not only producing energies in the non-fossil way, but also contributing by saving energy by deploying the equipment and technologies which save energy. So, this movement has taken quite a quite a momentum globally and also in India and we are getting a very good response.
We also partnered with Indore Smart City Development Limited to provide continuous power supply with digital technology. All the smart cities or the cities which are very progressive, we find that they have a tendency to buy good technology now, and they want to go for the solutions which are quite high end and that's good to see the trend that we are observing. ABB India Limited's Board also has approved divestment of our turbocharger business as a going concern on a slump sale basis to its wholly owned subsidiary. And this is in line with ABB group's announcements around this business globally. ABB India also unveiled the new corporate office and the business office, it's an integrated office. Earlier our registered office was in World Trade Center, which was a leased facility, but we chose to make an investment in one of our manufacturing plants here in Bangalore, in Peenya location that is our registered office, We have the corporate office and the business offices integrated which not only brings market oriented synergies, but also is an example of how conscious we are of new trends post COVID, how we should organize ourselves to serve our customers and the market base. We have used several ABB products in this building and every building that we do, and it is automated to its teeth, it is likely to have 25% to 30% energy efficiency related to similar size business which is operated without ABB technologies.
Looking at the profitability and the growth. So, the numbers in front of you speak for themselves
- we had a strong quarter year to year growth between Q4 '20 to Q4 '21, which means the December quarter for us. And if you see Q4 '21 on sequential basis with Q3 '21, there's a strong growth in all the parameters. For the full year CY21 versus CY20, there's a strong growth in all the parameters. So, we are quite pleased with this trend given that H1 '21 was disturbed because of COVID related health emergencies that we had to deal with and certain disturbances in the market. But we came back quite strongly, and this shows the underlying strength of our portfolio, our connection with the market segments, our team's performance as well as the market resilience to bounce back and reward with our engagement with them.
Now, on the qualitative side of the growth, we found that we had quite a good uptake on the short cycle orders. We have 18 distinct divisions which connect with about 20 market segments and all these market segments have their own cyclicity and we find that this connection and this matrix between our division proposition versus the multiple market segment really gives us a very robust and resilient base. Not one particular segment affects and impacts us adversely. We
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ABB India Limited
February 11, 2022
have observed in the market segment that there are more market segments joining in on the growth trajectory and the same is being reflected in our underlying numbers.
Systems and services made a good comeback, the system orders, the integrated system orders, the services, and our ability to deliver services at customer side improved and that also is showing in our services business. On the oil and gas sector and the customer activity in power generation remained stable and it continued to reward us both on the fresh orders as well as on the service orders. Transport infrastructure in the buildings, renewables, data center and railways we continue to see good traction.
These were some of the highlights to give a color about the nature of solutions that we put into the market and the differentiated market segments we deal with, be it the conveyer system wherein the electrification drives and automation was used by ABB, or be it ABB drives which has the Covaxin manufacturing facility on the emergency basis so that we can ramp up those manufacturing plants. We expanded our capacity for low voltage motors at our Faridabad factory which is powered by renewable energy. In the city of Surat, we continue to provide solutions, both electrification and instrumentation for clean water supply in entire city.
Likewise, we reached the five-gigawatt milestone in the solar automation solutions delivery in India. We also completed a melt shop digitalization project for one of India's leading steel company and they are measuring the boost in their productivity and profitability because of this implementation. Ola, is making a mega factory for electric scooters, completely automated by our robotics and automation solution. It is finding it's scaling up as we go forward. And having chosen the robotic solutions, and also the automation solution, that's a good base for a company to scale up. Last but not the least, we are proud, and we feel very good on part of our engagement to help the cause of women and child education. We have about 200 young girls who are meritorious but from the poor families. They are being sponsored by us for four years for their engineering education in colleges in Pune, Hyderabad and Bangalore and we continue to expand it through our partners, Lila Poonawalla. Not only do we sponsor the education, we also do the mentorship as well as internship possibilities for these girls so that they are prepared when they come out of their colleges.
Now, we saw a strong growth in our exports, more and more allocations have come into our manufacturing plants. And more and more markets are being served by us here. That shows that the confidence level of our global businesses to use India as a base to expand and use the manufacturing from here to go to the other market. We have very stringent standards. So, we don't do it in a rush, we don't move from one location to the other, but we make thoughtful decisions. Wherever all the divisions have taken the additional mandate to export, they are doing a world class job. Most of the customers who we deliver to and the markets we deliver to, right from North America to Southeast Asia, customers are quite satisfied, and demand is growing and that is also boosting certain expansion. Likewise, I mentioned earlier, services grew, and they continue to expand, and we see that trend going forward in 2022 as well.
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ABB India Limited published this content on 25 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 05:51:00 UTC.