Update cookies.txt

cookies.txt

@@ -1,10 +1,759 @@
-# Netscape HTTP Cookie File
-# http://curl.haxx.se/rfc/cookie_spec.html
-# This is a generated file!  Do not edit.
-
-www.kaggle.com	FALSE	/	FALSE	1700802860	ka_sessionid	8843315a41079fef471627f9cf0bd30f
-www.kaggle.com	FALSE	/	TRUE	1700975835	__Host-KAGGLEID	CfDJ8NSqinUnJeVEiXArhqqCQ6tX6jLmiPE4bSSVX6zLBZLzF0tE90khaC7Wd_ubUdYMZ2lYh_-qLJKs-9ETpqIFNNgUhgdtGypNtG6QN2tYTxS6E5Q3R-VpNuXY
-www.kaggle.com	FALSE	/	FALSE	0	GCLB	CN3vv5eD6738tAE
-www.kaggle.com	FALSE	/	TRUE	0	CSRF-TOKEN	CfDJ8IPkmlRqhQhDn1PidxljKKSbYgN18iRCJRtmly8VyR2782qJENmtGpKsl9NfsEiGnyC5WzalSm5yKSvkAKUhpvTML0fd4E_ENcFnh1SOPA
-www.kaggle.com	FALSE	/	TRUE	0	XSRF-TOKEN	CfDJ8IPkmlRqhQhDn1PidxljKKT650jUPLHrAKFPQxNUv8UcZENaIWZTt9r7TEe1ucDHt6L6agYp9mPFtcBi7xgH4j-S_ZMRD4pmA4wFNZGBGtk7-HHvqLHYW1s_FZszBvv53dWqB7N3dHPfbErNCH2K4zY
-www.kaggle.com	FALSE	/	TRUE	0	CLIENT-TOKEN	eyJhbGciOiJub25lIiwidHlwIjoiSldUIn0.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-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.
+ABB India Limited
+Registered and Corporate Office
+Disha - 3rd Floor, Plot No. 5 & 6, 2nd Stage
+Peenya Industrial Area IV
+Peenya, Bengaluru – 560 058
+Karnataka, India
+CIN: L32202KA1949PLC032923
+GST: 29AAACA3834B1Z4
+Phone: +91 80 2294 9150 – 54
+Fax: +91 80 2294 9148
+Investor.helpdesk@in.abb.com
+www.abb.com/in
+REF:INABB:STATUT:LODR:ANALST_TRNSPT: August 16, 2023
+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 of our letters dated August 7, 2023, and August 11, 2023 we are enclosing
+a copy of the transcript of conference call with analysts, which took place on August 11, 
+2023 post announcement of Q2 results FY 2023 of the Company. 
+The said transcript is also uploaded on the Company’s website.
+Thanking you
+Yours faithfully
+For ABB India Limited
+Trivikram Guda
+Company Secretary and Compliance Officer
+ACS 17685
+Encl: as above
+Page 1 of 20
+ABB India Limited 
+Q2 (April to June) CY 2023 
+Earnings Conference Call
+August 11, 2023
+MANAGEMENT: MR. SANJEEV SHARMA – COUNTRY MANAGING DIRECTOR
+MR. T. K. SRIDHAR – CHIEF FINANCIAL OFFICER
+MR. SANJEEV ARORA – PRESIDENT & LEAD BUSINESS 
+MANAGER (MOTION)
+MR. KIRAN DUTT – PRESIDENT (ELECTRIFICATION)
+MR. SUBRATA KARMAKAR – PRESIDENT & HEAD 
+(ROBOTICS & DISCRETE AUTOMATION)
+MR. GANESH KOTHAWADE – SENIOR VICE PRESIDENT 
+(ELECTRIFICATION)
+ABB India Limited
+August 11, 2023
+Page 2 of 20
+Moderator: Ladies and gentlemen, good day, and welcome to ABB India Limited Q2 April to June Quarter 
+CY 2023 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, and any unauthorized recording of this 
+call is strictly prohibited. The recording will be made available on the company's and SEBI's 
+website subsequently.
+I now hand the conference over to Mr. T.K. Sridhar – Chief Financial Officer of ABB India 
+Limited. Thank you, and over to you, sir.
+T. K. Sridhar: Thank you. Thank you, Yashasri. A very warm welcome. Good evening to all of you for the Q2 
+analyst call, wherein we will take you through the performance of Q2 of ABB India Limited.
+So, together with me is Mr. Sanjeev Sharma – Country Managing Director; Sanjeev Arora, who 
+represents Motion; and Kiran Dutt and Ganesh Kothawade, who are from EL. And we don't have 
+Balaji. Balaji is traveling from PA, but we have Subrata Karmakar from Robotics.
+So, over to you, Sanjeev, so that we start off, and then we can go to the financials.
+Sanjeev Sharma: Thank you, Sridhar. Good evening, everyone. Thanks for joining this call so late on a Friday. 
+So, we can understand that we should start this call on time and end on time so that all of you 
+can go back to your well-deserved long weekend.
+You know that ABB, as a company, has been around for more than 130 years. We continue to 
+keep our leading position with our leading technologies in electrification and automation. And 
+in India, we have been manufacturing for last 70 years-plus. And our presence here has been
+over 100 years. Our 4 verticals or business areas, electrification, motion, process automation, 
+robotics and discrete automation, they operate in India with 5 manufacturing locations. At this 
+point in time, we have 25 plants, 21 sales office and 750-plus partners who bring us deep inside 
+the different market segments as well as the geographical spread of our country.
+Those of you who have been following ABB for a long period of time, you have seen that ABB 
+has grown its depth in terms of the market segments we cover. So, if you see this chart on the 
+right, which we call as SUSTAIN, these were the typical market segments ABB used to operate 
+many years ago, which we, in other words, used to call our core segments, cement, metals, 
+mining, buildings and infrastructure, power distribution, oil and gas, marine and ports, rubbers 
+and plastics. These were the typical market segment which used to give us bulk of our business. 
+And they were very dependent on the capex cycle of large companies. But over a period of time, 
+as India has grown and also new market segments and new market opportunities have come and 
+also with our own concerted effort to expand ourselves into new market segments, we have gone 
+into segments which are covered under ENHANCE. So, that is making a significant contribution 
+ABB India Limited
+August 11, 2023
+Page 3 of 20
+to our growth. And the focus segments which are the new generation market segments where, 
+again, our growth rate and penetration is increasing, and our products are finding good favor 
+with our customers.
+And the ones which you don't see on this chart, they are on anvil. There is a new, very large 
+energy transition taking place in the country. So, we have identified a few opportunities wherein 
+the customers are forming their capex as well as future investments. And you will see those 
+market segments will also get expanded. So, at the moment, we focus on 23 market segments, 
+and this is our base for us to drive the growth in our 18 business divisions. 
+So, like every time, we talk about a particular market segment every quarter just to give you 
+more granularity of a segment, how we see it. So, food and beverage is the theme for this quarter, 
+a deep dive. What we have in this particular market segment, we see about $535 billion of the 
+formation of the business in this year. And it has grown quite rapidly from FY '22 at $290 billion 
+and is expected to be $535 billion in FY '25.
+And you can see the market segmentation of it. And all these market segments, with the direct 
+and indirect opportunities, play with our portfolio. Mostly indirect through machinery suppliers, 
+OEMs, as well as our channel partners, they bring a lot of business, and also the large companies, 
+they buy equipment and technology directly from us in this segment. So, fastest-growing 
+segments, you can see the packaged food, dairy, meat and marine. And also we see with the 
+changing lifestyle and food habits, there's a strong domestic demand for this particular segment. 
+The expansion of capacities is taking place and more and more emphasis is being put by the 
+government. 100% FDI for food processing, PLI schemes, all these are part of this market and 
+our portfolio in drive motors, automation, instrumentation, robots, switch gears and digital 
+powertrain goes into it.
+Now coming to the business highlights. Our Quarter 2 of 2023 - where we call it as a June 
+quarter, I think for many, reference point is quarter 1, but for us it is quarter 2. The orders were 
+up 10%, despite a higher base, driven by emerging and traditional segments. Revenues are up 
+22%. And profit after tax, if you take a year-on-year basis, it's 200 basis points higher, driven by 
+operational efficiencies as well as good execution of the backlog. We have expanded the 
+manufacturing footprint of energy-efficient drive portfolio. That again, is playing into the sweet 
+spot of the market, wherein more and more customers are replacing or buying products which 
+are more energy-saving. So, energy-saving and energy-efficient is a sweet spot for ABB, and we 
+see a lot of emerging demand in that particular area.
+And not only are we helping our customers to reduce their carbon footprint, we, ourselves, have 
+a concerted effort within the ABB organization, and we have been able to reduce 85% GHG 
+Scope 1 and Scope 2 emissions until quarter 2, 2023 compared to a baseline in 2019 in all of our 
+manufacturing locations. So, it's a program that we run, and we are very proud of how our teams 
+and our businesses have taken upon it and how we are able to be making an impact in each and 
+every location. We are engaged with 3,000-plus customers across 13 Tier-1, Tier-2 and Tier-3 
+markets, and a substantial amount of business is coming from these markets for us. We are 
+ABB India Limited
+August 11, 2023
+Page 4 of 20
+maintaining a good cash position in our balance sheet, and our free cash flow conversion is in 
+line with profit after tax. The Board has approved a special dividend. I think that Sridhar will 
+give you a bit more details there. We thought that we will bring some value to our shareholders. 
+So, there's a positive market momentum across all the segments that we are focused on. All our 
+businesses are growing. All of our businesses are having profitability in the right direction. Our 
+business now tends to be a short cycle. Our services are growing at a healthy rate. We also have 
+good exposure to very strong emerging market segments, be it in the automotive traditional or 
+EV segments which are emerging, electronics which is expanding, and also F&B segments. And 
+the investment by Railways and Metro, that also is quite favorable for our portfolio and also 
+process industries which has started making OPEX and CAPEX investments, there again, we 
+are finding good favor. So, with that, our order backlog has grown nearly 29% to Rs. 7,700 crore.
+So, we have some examples here, we have the power and automation going into an aluminum 
+major. Then we have the motion solutions comprising of drives and synchronous reluctant 
+motors going for a heavy electrical major. Then we have traction motors for railways, blending 
+solution for a Japanese engineering procurement company for the energy space, robotics 
+solutions for metals majors - It's a non-automotive project. Power distribution and management 
+for data centers, which again is a very strong emerging market segment, along with robotics -
+paint in white in orders for automotive majors. More and more Indian automotive majors are 
+investing in robotics, and we have quite a favorable positioning there. And of course, our switch 
+gears going into ethanol production are also on display.
+Our teams have this recipe of really going and connecting with customers deep in the market 
+segments with the new customers as well as existing customers and we had a very strong 
+engagement in the last quarter across 13 Tier-2 and Tier-3 markets. This is one of the reasons 
+the effort and the leadership of our businesses is really contributing to our growth.
+As I mentioned, our GHG Scope 1 and 2 emissions are down 85% on the baseline in 2019. We 
+recycle almost 96% of our waste. And 2 of our 5 plants are now water-positive, cumulative till 
+quarter 2 of 2023, and we hope to have all our plants water positive. On the CSR perspective, 
+we continue to make impact on helping and supporting our surroundings as well as the targeted 
+areas with the infrastructure projects, providing skills as well as education in multiple schools, 
+having the kind of residential facility for women with special needs in Nashik. We have a midday meal program supported through Akshaya Patra Foundation. In Faridabad, we run a program 
+which is an education scholarship for girls with IT skills, and health care for making special 
+camps for communities who don't have access to those means.
+So, with this, I will hand it over to T.K. Sridhar – our CFO, to take you through our financial 
+highlights. Thank you.
+T. K. Sridhar: Thank you. Thank you, Sanjeev. It gives me immense pleasure to bring you the results, which 
+is absolutely a solid performance in the quarter. So, I think, first of all, I would like to tell you, 
+based on the feedback what we got and also the global standards, we improved our press release, 
+ABB India Limited
+August 11, 2023
+Page 5 of 20
+which would have reached you all with more information, which we will do on a half year and 
+full year basis so that we have a better transparency and clarity on the data of the performance 
+of the company.
+So, going by that, I think we have now got a consistent track record. Orders are at Rs. 3,044 
+crores, which has seen a 10% Y-on-Y growth. Order backlog, we are at Rs. 7,729 crore, 29% 
+up. Revenues - we now have reached Rs. 2,500 crores per quarter. So, that's now consistently 
+tracking at that level, with 22% growth. And profit after tax and the profit before tax, I think, 
+have grown exponentially with Rs. 393 crores and Rs. 296 crore for the quarter, which is more 
+than 100% of what we had delivered in the previous year.
+So, we bring to you, apart from this, I think, a couple more data points, how our earnings per 
+share has been improving for the last 8 to 10 quarters and also what has been our trajectory on 
+converting the profit into cash. So, we are now quite efficient in converting the profits into cash, 
+we are trending at an average of 100 % of what we earn.
+So, I think this is a key summary of how the Q2 looks like. Just to get some more information 
+about how we did for the half year. So, half year, on the order level, we are trending at 22% 
+more than the half year of last year. So, Rs. 6,169 crore as against Rs. 5,066 crores in orders. 
+And the backlog, we said 29%. So, revenues are up 22%. And profit before tax and before 
+exceptional items is up by 83%. And profit after tax is up by 5 %.
+The gap is more because in the first quarter of last year, we had one exceptional transaction 
+impact of the turbocharger sale divestment, so which can be made out this quarter's PBT of Rs. 
+328 crore. And that's the one which is included in the profit after tax of the last year. So, that has 
+an impact. But if you remove that, the profit before tax and profit after tax for the 6 months also 
+will trend at the same levels is what we have seen. So, cash balance, we are at Rs. 4,092 crores 
+at this point of time.
+Just to dwell a bit more on what the structure of the P&L looks like. So, as we explained the 
+revenue portion of it, other income consists mainly of interest income from the cash deposits we 
+have made. The material costs are holding on at 63.5%. This is probably because of 2 things. 
+One is the mix of orders remaining consistent with a good amount of services portion and also 
+a bit of a softening of the metal prices, which has helped us. And our ability to command a better 
+price in the market has actually improved the material cost. These material costs are derived 
+from the orders we have booked in the previous quarters. So, this is something what we need to 
+keep in mind.
+Personnel expenses is at Rs.168 crore compared to Rs. 145.7 crores from same quarter of the
+last year. And that's representative of the increments that have been given to the employees on 
+a year-to-year basis. We don't have any other events apart from that. Other expenses remain 
+consistent. So, the only outlier is the exchange and commodity price variation. So, in last quarter 
+it was Rs. 56.8 crore, and this quarter was Rs. 29.8 crore, resulting in a Rs. 30 crore swing. That's 
+ABB India Limited
+August 11, 2023
+Page 6 of 20
+the only additional impact. But otherwise, the other elements remain pretty consistent with what 
+we had in the previous quarters.
+So, overall, we are very satisfied to deliver this particular result as there is profit after tax of 
+11.8% and on a 6-month basis at 11 %. 
+So other income includes 49 crores, and majority of it is interest income. Operational EBITDA, 
+quite interesting, I think this is something which all you have been tracking as to how ABB is 
+performing. We maintain stability on the performance. So, we always have been saying that we 
+want to have the 10% PBT first and then move into the next corridor of delivering better 
+profitability and PAT level, and that is reflective in this particular slide of EBITDA and PBT. 
+And that's more because of the volume price and the capacity utilization.
+Just to give a bit more color on how each of the segments have performed. So, electrification 
+and motion, everyone continues to be on the growth trajectory. All the divisions in electrification 
+posted a growth. So, I think that's something which is quite visible in across all the divisions.
+Revenues - this is basically possible because we had a seamless supply chain supporting the fast 
+growth of the EL division, which also helped in delivering the revenues on time. Profit before 
+tax and interest, I think it is more of a price realization, capacity utilization and a mix, which 
+gave a positive lift to the numbers.
+Motion. I think, again, a strong demand from energy-efficient products. This is a theme which 
+is a hallmark of Motion offerings. So, that has actually driven the growth. And it's good to see 
+that for the last 2 quarters, we are consistently at Rs. 1,100 crore in order bookings and reaching 
+up to Rs. 1,000 crores in revenue execution as well and a good development in profitability as 
+is evident. Q1 had a onetime impact of a quality warranty what we have provided, and that's 
+exactly what is there, and this was already informed to you in the last quarter's earnings call.
+Process Automation. So, we got a large order from a metals major as was told. I think that's 
+helping us to get to Rs. 784 crore this particular quarter. Revenue is consistent with the order 
+booking, what we had on hand of Rs. 510 crores, so profitability coming back to Rs. 11.1 crore. 
+And I think in the Q4 '22, it was more contributed because of the highest ever revenue, which 
+was there, an exceptionally higher service revenues, which pulled up the profitability to Rs. 17.6 
+crore.
+Robotics. Again, another quarter of solid performance. So, the orders were slightly less than in 
+this particular quarter compared to the run rate, and that's more about the timing of orders. This 
+being the first quarter for quite a few companies, so the decisions come up in the next quarter 
+onwards upto the financial year starting from April onwards. But I think Robotics as a business 
+is actually performing and quite consistently with the numbers we have.
+The last slide is about how we see our channels, offering and geography. So, products 
+dominating the total offerings with 77%, services with 13%, and X1 projects with 10%. There 
+has been a broad bifurcation.
+ABB India Limited
+August 11, 2023
+Page 7 of 20
+Next is geography. I mean, while it is good to see that we have 11 % of exports that has come 
+out in this particular quarter, more important is that the domestic demand is growing faster than 
+the export. While we see the absolute value of exports also increasing, the domestic demand is 
+far exceeding the export demand, and that's exactly why the percentage seems low.
+So, what is the focus for H2 '23? So, definitely, we continue on the market penetration. We also 
+make sure that we have an order booking momentum going on. And sustaining margin 
+momentum is also key for us to be there in the corridor of our goals. And we'll make sure that 
+capital that is available is allotted for the right projects and the right processes. And last but not 
+least is making sure that the sustainability target is also achieved.
+So, while on this, I have something else which I thought I should offer to you because I know a 
+lot of people reach out to the organization to set up meetings. So, in order to make sure that we 
+have a more seamless experience on how we deal with analysts and investors, we thought that it 
+is time for us to gear up to make it more digital and make it more user friendly.
+So, we will reach out to you with a link wherein you could register yourself and ask for meetings, 
+and then the organization will make sure that it is set up at the right point of time. And this also 
+helps us to share with any of the regulators at some subsequent point of time if it is asked for. 
+So, this way, I think we make it a bit more structured and more documented also well for you, 
+and it also helps you to record yourself for the meetings or to have that with ABB.
+So, with this, this is the end of our discussion. So, we could open now for Q&A.
+Moderator: Thank you very much. We will now begin the question-and-answer session. We have our first
+question from the line of Renu Baid Pugalia from IIFL Securities. Please go ahead.
+Renu Baid: My first question, obviously, when we look at the numbers, margins, you have seen consistent 
+improvement. While your comments have been very clear, can you show some more inputs in 
+terms of the gross margin's consistency of 36% for almost 3 quarters now… How sustainable is 
+this? And what comfort do you derive from the order pipeline in terms of competitive intensity 
+in the mix, which should help you sustain this profitability?
+Sanjeev Sharma: Thank you, Renu. Thanks for this question. So, we have shown you our backlog numbers, which 
+have grown by 29%. So, that gives us forward revenue surety, and that's where the margins come 
+from. So, we have a fairly robust pipeline of revenue. So, we feel that with the consistent 
+execution each and every division that is carrying out, I think trajectory is in the positive 
+direction for us.
+Renu Baid: And any input specifically on the mix of large orders that you have booked in the current quarter, 
+probably in the process segment? And how has been the outlook from core sector awarding like 
+steel, especially on the greenfield projects? Also, do you perceive any slowdown in orders 
+towards the end of this calendar year or beginning next calendar due to the elections?
+ABB India Limited
+August 11, 2023
+Page 8 of 20
+Sanjeev Sharma: So, the second part, I'll answer. First part, you can go ahead about the orders being booked, the 
+large orders, Sridhar?
+T. K. Sridhar: Yes. I think the large order, what we have booked from a metals major, I think that happens
+normally in Process Automation. And also, Renu, to answer your question on the first question, 
+which is consistency about how good will that 63.6% or 64% in the material cost, right? So, if 
+you look at the backlog, the majority of it is projects because it comes. But all the product 
+businesses, which is motion and EL, a lot of them are book-to-bill or short-cycle orders. So, 
+that's also governed by the current prices which happens in the market. And so, it's a matter of 
+how we execute the existing backlog mix with the capacity utilization and the service 
+composition.
+That remains the key. So, our endeavor has been to remain in that material cost level. So, what 
+could basically upset that? That would basically be the volatility in the FOREX, anything which 
+could happen on the economy with respect to the demand situation with respect to metals, right? 
+So, this is what we see. As far as technology is concerned, we have more prudent offerings in 
+that particular space, right? So, this steel order will get executed over the next 18 to 20 months, 
+that’s what I was saying. Over to you, Sanjeev.
+Sanjeev Sharma: So, with respect to forward outlook, we respond to how we see the market developing close to 
+our nose. So, we engage, and if the market responds positively, we continue to engage and 
+continue to create capacity to deliver on time for the customers. So, even if the market is very 
+robust, we always make sure that we make commitments in the market which we can deliver 
+and honor on time, be it supply chain disturbances or any other disturbance which could be there 
+in the marketplace. So, I think that has been our trademark. Now looking forward, when I look 
+into our distinct themes because ABB, of course, is one company, but then we have 18 
+companies within one company. As when I interact with each of the division leaders, they're 
+really engaging very well with the market. Their targets are to expand from the base where we 
+are, and they are quite positive. They see the market responding in a positive way at this point 
+of time and also with the forward pipeline.
+There are certain pockets which are in a multiple market segment and multiple product lines or 
+product division portfolio, you will either have one line or the other wherein some hotspots 
+develop, which are very natural. Only on the minority side, there is a certain sluggishness here 
+and there in the market segment or a product line, but not on the majority side of it, Renu. So, 
+that's what we see. Now with respect to the election year, probably, I think we'll listen to your 
+report, if you have done a better analysis so that we can learn from it. So, there is something, I 
+think, we will learn from the market rather than have our own point of view on it.
+Renu Baid: Also, just want to comment and appreciate your efforts for being the first to automate the investor 
+side of queries and requests. Thank you and appreciate your efforts.
+Moderator: We have our next question from the line of Deepak Krishnan from Macquarie. Please go ahead.
+ABB India Limited
+August 11, 2023
+Page 9 of 20
+Deepak Krishnan: I just wanted to understand, given that our cash position is substantially improving, you've 
+indicated we could look at potential transactions. Where are we on that path? How close or how 
+far is that event? And if not, then what do we do with such a healthy cash balance that we're 
+sitting on?
+Sanjeev Sharma: So, we have both organic and inorganic plans. So, the organic plan is very well laid out, in line 
+with the demand that we are seeing in the market and the capacity utilizations we have reached. 
+So, those are very firm and very predictable as we go forward. And also, we have many of our 
+global divisions coming to us, using India as a base to serve global markets. So, incrementally, 
+different businesses have started showing interest in that area. So, we should expand in that 
+direction as well. So, that's one way of utilizing it.
+Then what we have at this point of time is for every business area and every division, we have 
+very clear targets what we are looking for, what kind of technologies, bolt-on technologies we 
+are looking for in each division. And this is something which is a search at a global level as well 
+as at a local level. And both will happen. So, some kind of acquisitions can take place at a global 
+level with that targeted approach, and some will happen at a local level. So, that's where it will 
+get utilized.
+And in this particular space, both should be ready, buyers and sellers. So, buyers should be ready 
+to buy. We are ready. But then the sellers should be ready to also transact. So, we do have a 
+pipeline there, but it will happen over a period of time. And I think that's how we will see 
+utilization of cash going forward.
+Deepak Krishnan: Maybe just a follow-up. Just indicating that you indicated the pipeline continues to remain 
+strong. And last quarter, you sort of indicated a 12% to 15% is the order inflow growth that we 
+were expecting for this year. But given that 1H we are already at 20% plus. Do you see that we 
+would be more at the upper end? Or do you see potential to back to even the price higher than 
+what we were recently indicating?
+Sanjeev Sharma: What Sridhar said is that this is the first quarter generally for the industry, they are typically 
+sluggish in this quarter. And then it picks up in the second quarter, third quarter and fourth 
+quarter for the industry. So, we don't see. I think when we meet large corporates and mediumsized corporate and kind of upcoming companies, actually, we don't see any sense of passivism 
+as yet. So, we will play by the market. It's difficult to predict how it is. But I think we will keep 
+on making a deeper penetration in the market segment and the geographies. And none of those 
+efforts are disappointing us at the moment.
+Moderator: We have our next question from the line of Sumit Kishore from Axis Capital. Please go ahead.
+Sumit Kishore: We read your press release, it says that base order inflow growth was 4% year-on-year. Is there 
+a risk of the base orderings sort of plateauing out after for a while? That's my first question.
+ABB India Limited
+August 11, 2023
+Page 10 of 20
+T. K. Sridhar: Sumit, we have said that it would be on a high base of last quarter same year so, that's basically 
+what we meant, that when we see the 4%. Last year, the same quarter was in a fast track, which 
+was a rebound after the COVID period and people started to place orders. And that's exactly 
+what we said that it was on high base orders. And so, in spite of that, we are able to grow.
+Sumit Kishore: So, I was saying that you mentioned in a certain business segment in the base quarter, which 
+might have also slowed down the base order inflow growth in Q1?
+T. K. Sridhar: Actually, Q1 in robotics, last year, we had an electronics segment, which gave us an order, which 
+was a one-off order. So, therefore, there were 2 large orders, which were booked in Q4 '22 and 
+Q1 '23. So, that's exactly what we meant over there.
+Sumit Kishore: My second question is that your gross margins have been stable, there are operating leverage 
+benefits playing out, which are showing up in EBITDA margins. Now as the cycle matures, 
+would you lower the threshold on gross margin? Because essentially, with the operating leverage 
+benefit, you would still make the same EBITDA margin and the same profit margin. So, in 
+booking more orders, would market forces make you lower the gross margin that you're making 
+right now?
+Sanjeev Sharma: Well, I think it's a very, very good question and insightful. But typically, as a company, you 
+respond to the market forces as they present themselves. So, what we have right now is we are 
+playing as the market demand is there and seeing the elasticity of the market to absorb the price 
+points that are available in the market at large. So, I think this is something you don't predict, 
+but you adjust as you face the market.
+Sumit Kishore: Because when we look at the peak of the last CAPEX cycle, we sort of see that your gross 
+margins were a lot lower actually at that point versus what you are making right now.
+Sanjeev Sharma: Which year are you referring to?
+Sumit Kishore: I mean, towards 2007 and 2008.
+Sanjeev Sharma: I think all of us were very young at that time, but you have a point. If you may have seen the 
+ABB portfolio now, it is very different relative to what was in 2007. We were very project heavy, 
+very concentrated. But now the portfolio is very, very different. The character of the company 
+as well as the penetration and our exposure to market segments, geographies is very, very 
+different. So, I think on a like-to-like basis, it's not comparable.
+T. K. Sridhar: But Sumit, thank you for this question. Also, until now, we were always asked questions, when 
+will you reach or surpass that particular 2007 level? Today, we are talking that we have already 
+surpassed that, so how are you going to maintain, right? So, that's a good conversion as what we 
+see.
+ABB India Limited
+August 11, 2023
+Page 11 of 20
+Sumit Kishore: Yes. Now, near that point, your ROE levels were significantly higher. And you're closing that 
+gap very fast now, but your ROEs were in excess of 30%. So, that was at the peak of the last 
+cycle, yes. Thank you.
+Moderator: We have our next question from the line of Amit Mahawar from UBS. Please go ahead.
+Amit Mahawar: Sir, congratulations on great profitability. I have 2 specific questions. First is on motion, the kind 
+of demand we are seeing in propulsion systems, do you think capacity-wise we are ready? And
+do you think next 2 years, the run rate of motion, especially from propulsion, etc., that we can 
+have is going to be significantly higher? That's my first question.
+Sanjeev Sharma: We could give this question to our Motion head, Sanjeev Arora. Sanjeev, did you get the 
+question?
+Sanjeev Arora: So, if I got it right, it is upon the expansion and the investments relation, right?
+Amit Mahawar: Yes.
+Sanjeev Arora: Do we see good investments and how are we prepared for that? So, if that’s the question, thank 
+you very much, I think very well pointed out, and that is exactly how we are playing in this field. 
+We are expanding our portfolios, our production facilities. And you have seen in the past that 
+we have also put up a traction motors plant in Vadodara last year. And also, we are expanding 
+our converters production facilities as well. So, we are getting up, and we'll be coming as close 
+as the market demands.
+Amit Mahawar: Fair point. And the second question is more on the electrification portfolio, and maybe Sanjeev, 
+you can help us here. We have a significant gap when we talk about the low voltage products 
+range. If you look at the MNC peers that we have in India and the kind of growth and run rate
+they are also seeing now, can I assume that most of the capital allocation of ABB will go in the 
+EP segment because of CAPEX? And can you help us compare the gaps in EP portfolio that you 
+want to address?
+Sanjeev Sharma: So, we have Kiran Dutt who heads our leading portfolio on the product side, the smart products 
+and smart building product portfolio. So, we will invite comments from him. And he's seeing 
+quite good growth. And we also have Ganesh Kothawade who looks into the electrical 
+distribution portfolio, which deals with the medium voltage. So, first, I invite Kiran with respect 
+to how you see growth in the EL side of your portfolio, and how relative to competition, that 
+work, I think, is just the question.
+Kiran Dutt: Thank you, Amit. I think overall, if I look at it as a perspective, I could understand your question 
+in terms of what are we trying to do, are we able to catch up with the competition? I think, yes, 
+in terms of the portfolio, we have been trying to expand and not only the portfolio which are 
+going to be utilized in India, but also trying to have some portfolios and getting it from Europe 
+as well.
+ABB India Limited
+August 11, 2023
+Page 12 of 20
+So, overall, in terms of the portfolio gap, whatever is there or is going to be there, it's being 
+addressed looking at the market requirements which is going to also come up in the future as 
+well. So, not only in terms of what needs to be done now with the existing portfolio and also 
+what would be the requirements because the market segments are changing, and we need to 
+adapt ourselves to that particular segment. We are also trying to bring in more and more 
+portfolios in electrification, specifically on the low-voltage side.
+On the medium voltage side, maybe Ganesh can take over.
+Sanjeev Sharma: So, electrification is the largest business for us. And within electrification, we have the products
+and the ELDS, which is the distribution system. So, actually, the real competition is between 
+these 2 guys, wherein right now the ELDS is the largest business. So, now if the question is 
+either that Kiran will be able to surpass that or not. So, I think that's where they are focused on 
+in terms of how to engage in the market. Inviting comments from Ganesh. How do you see 
+ELDS portfolio as well as your position in the market?
+Ganesh Kothawade: Thanks, Sanjeev. When it comes to the Distribution Solutions business, we all know that we are 
+really leading in this business, and we have quite a matured portfolio because we are here in 
+India since last 40 years, and we have almost all the products which are manufactured locally.
+And as Kiran has rightly said, because there are some segments which are now changing. We 
+are coming out with the solutions which are segment-specific because evolving segments like 
+the data centers or food and beverage, these are some of the segments that require a very specific 
+solution, and we are coming out of those type of solutions.
+And also, there is some shift in technology where the market is demanding for greener products. 
+And we already launched an ecofriendly GIS (gas insulated switchgear) last year and the next 
+expansion of those range also will come to the market. So, I don't see a major gap in terms of 
+distribution solutions, what is required by the market and in our customers in India.
+Sanjeev Sharma: Thank you, Ganesh. And a very quick comment. The rate of growth of the portfolio, which Kiran 
+is running between ELSP and SB, we are seeing a very healthy growth rate there. And also, I 
+think the plans going forward are very, very encouraging, and the momentum is encouraging.
+And also, our factories, which are delivering this product portfolio, I think the productivity gains 
+that we are getting there with increased automation and also new techniques that we have 
+developed, I think that is also adding to our bottom line in a very significant way. Very, very 
+strong businesses, ELDS and ELSP and ELSB. So, we are very encouraged. And all the 
+allocations that are demanded by these businesses are being given to them.
+Moderator: We'll take our next question from the line of Ankur from HDFC Life. Please go ahead.
+Ankur Sharma: Great numbers once again. So, I have 3 questions. One, going back to the base order growth, 
+which was just about 4% this quarter, and I take your point that we are sitting off a large base 
+ABB India Limited
+August 11, 2023
+Page 13 of 20
+last year. But just trying to understand, especially on the motor side, which is typically short 
+cycle, small orders, 8% growth. Even on the PA side, including this metal order, that's a 10% 
+growth. So, is there some lack of momentum which you are seeing? Any slowdown we are 
+seeing in terms of order? Or is it that we should kind of reset our expectations to a high single 
+digit kind of order growth, given the base we are on?
+Sanjeev Sharma: So, Sanjeev Arora is very well connected with the market on the motor side of the business. 
+Sanjeev, how would you answer that query?
+Sanjeev Arora: I think a very good observation. So, see, let's understand. We have also seen the softening in 
+metal prices. So, that piece is also catching up when you talk of the absolute numbers. So, that 
+is one thing which you have to consider. And the second part is, I would say that the short-cycle 
+business, I cannot say that it is 100% right, but then we can see some kind of headwinds. At this 
+point of time, when we talk to our customers, be it the large international OEMs, end users, they 
+all have a heavy investment plan. But yes, it could be possible that we see some headwinds. But 
+as of now, they are not very visible, as I can say very confidently.
+Ankur Sharma: So, that's my question. So, basically, while growth may continue, we probably see a high single, 
+low double-digit kind of growth. That's the kind of growth because our overall orders are 
+growing at high 20s, right? So, maybe now we need to reset our expectations to more like a high 
+single, low double-digit kind of growth. Is that a fair assumption?
+Sanjeev Sharma: So, Ankur, nothing increases in a straight line. And if you go back many quarters, the motors 
+division has been growing at a very, very healthy rate. So, I think we have not only gamed the 
+market, but also, we have gained a lot of market share. Now a time comes when you will always 
+have a certain adjustment of the market demand and also adjustment of the competition, response 
+also to the position you take in the marketplace. So, in a portfolio wherein we have 18 divisions,
+and we have 23 market segments, we will always see this cyclicality, which is built into our kind 
+of portfolio. So, we will not be able to confirm or deny your hypothesis. We will play it out as 
+the market presents itself.
+Ankur Sharma: Fair point. And just a follow-up on the motor business again. Maybe Sanjeev, either of you can 
+answer. Just on the upcoming competition, we are hearing players like WEG, NIDEC, some of 
+these large MNCs looking to set up capacities in India. So, anything you can help us on the 
+incoming competition there?
+Sanjeev Sharma: Yes. That is true that Indian market is attractive, and it is attracting the players who are not 
+present here in this country. And they will find their space, and they will rightfully also find their 
+niches as well as the market space. But at the same time, we should know that the market is 
+expanding at a good healthy rate, and that's where it is. And our ability to deliver, even during 
+the stress situation like COVID, I think, keeps us at a very high speed in the eyes of our 
+customers, and there's quite a bit of loyalty built with the customers who want to stay with us. 
+So, that's something we continue to enjoy. But of course, when our competitors set up capacity, 
+I think like anywhere in the world, they will also create their own space, yes.
+ABB India Limited
+August 11, 2023
+Page 14 of 20
+Ankur Sharma: And just one last one on the rail side, especially on the propulsion. Clearly, what we're seeing is 
+a lot of project orders that the rail is ordering out, large LOCO, Vande Bharat, etc., tenders on 
+the Vande Metro as well, two private players to participate. So, how are we approaching that? 
+Because clearly, then you have to tie up with some of these guys who make the entire loco or a 
+coach, right, and then we supply the propulsion into that. So, some help there, do we have a tieup in place? 
+Sanjeev Sharma: So, we are participating in that market, and we'll get back to you soon if we have a success in 
+that engagement.
+T. K. Sridhar: But these orders will all take time to decide, right? So, because these are all mega orders, Ankur, 
+so I think it has to go through the process of verification and the placing of orders by agency.
+Sanjeev Sharma: But you’re right, I think this particular market segment is positive for our portfolio. And our 
+engagement is in the right place. And whenever such orders come, that will be quite an event, 
+and we will announce it to you.
+Moderator: We have our next question from the line of Puneet Gulati from HSBC.
+Puneet Gulati: Congrats on great numbers. Can you also talk a bit about what is the situation in terms of supply 
+chain for you and for the competition in general?
+Sanjeev Sharma: I can reply about ourselves, I have no clue about competition. Our supply chain has eased out in 
+most of the areas. And as I said, even during the peak of supply chain trouble, our global supply 
+chain managers really helped us out, that network helped. And we could cater to the demand 
+which we thought we can cater to at that time. And we didn't disappoint any of our customers 
+during that period. We were very forthright and clear. Right now, all those strains that we had 
+in the supply chain, they are not visible. I think it's fairly evened out for us at this point of time.
+Puneet Gulati: And secondly, can you also comment a bit on what are the further levers that you still have for 
+your margin expansion? And how high can you go from these levels?
+Sanjeev Sharma: Sridhar, do you have a formula for that?
+T. K. Sridhar: Puneet, I don't have a formula for that. I think it's a play of what we offer to the customers, right, 
+and how we intelligently manage our capacities and the cost, right? So, this is basically what it 
+is. And that's exactly what we have been trying to do. Our first initiative was to make it more 
+credible over the last 8 to 10 quarters, which we have done. And we have now slowly gotten into 
+the double-digit PAT margin, that’s what we see, right? So, I think we would like to remain 
+consistent and credible over there rather than just promising from here.
+Puneet Gulati: And just last one. Your share of direct sales this quarter has gone up. How should one read that? 
+Is it more quarter sensitive? Or is there a change in strategy from that?
+ABB India Limited
+August 11, 2023
+Page 15 of 20
+T. K. Sridhar: Direct sales in the sense?
+Sanjeev Sharma: End users.
+Puneet Gulati: In your channel mix, sir.
+Sanjeev Sharma: Large orders.
+T. K. Sridhar: It's basically about large orders and system orders, what we have got both. So, that's, in fact, 
+actually what has changed the share for this quarter.
+Moderator: We have our next question from the line of Parikshit Kandpal from HDFC Securities. Please go 
+ahead.
+Parikshit Kandpal: Congratulations on a great quarter. Sir, my first question is on the expansion plans in India. So, 
+I think earlier in the call, you said that the global divisions are interested in sourcing more from 
+India. So, just wanted to understand the large part of expansion which is happening in India. So, 
+how will be the mix there in terms of your own global companies and in terms of Indian market? 
+And how will it impact our exports, which is right now at 10%?
+Sanjeev Sharma: So, my mandate as a Managing Director for ABB India Limited is to serve these domestic 
+markets. That's the reason why we have a multinational arm present in India. Other places, our 
+company is present and is catering to those markets outside India. Now as we cater to Indian 
+market and our production capacities have increased to a good scale, and also our sophistication 
+and our productivity measures; it's not only the labor arbitrage India has, but also the productivity 
+arbitrage we are able to create now with technology, robotics, automation. So, our plants have 
+become global standards.
+Now we have certain global market demand, and we have that capacity available across the 
+globe to cater to that demand. Now it is for the global divisions to adjust those capacities
+somewhere else before we can serve the given demand from India. So, I think this will be a 
+logical process over a period of time. And in many of the divisions, that's already taking place, 
+and we have seen quite an upsurge of volume being supplied out of India into export markets.
+But in short term, I don't think the percentages needle will move too fast because the domestic 
+market is growing much, much faster than the international market. And if we have a capacity 
+adjustment at a global level and that gets moved lock, stock and barrel in India, then that's the 
+only time we will see this needle move on the percentage side.
+Parikshit Kandpal: And sir, my second question is on the pricing bid. So, post COVID, suppose that the highest 
+level of pricing was at 100, so what could be the trend now, given there has been correction in 
+commodity prices? I think earlier also, you said that motor, there has been some kind of 
+slowdown because of the correction in commodity prices. So, what levels of pricing would be 
+from the peak levels right now?
+ABB India Limited
+August 11, 2023
+Page 16 of 20
+Sanjeev Sharma: So, one thing we should know is when the inflation comes in, that inflation stays, right? That 
+escalation of the price that takes place as inflation, it stays into the system, and it stays as an 
+input cost. It doesn't go away. Now when the fluctuation of certain commodities by the actual 
+price goes up and down, that gets adjusted as you play the market. And typically, the price in 
+the market is based on demand and supply situation. It is not adjusted by the input cost basis.
+When the input cost is there, especially during inflationary periods, the customers are more 
+sensitive because they understand that they have to pay the higher price. But when it comes to 
+the normalization, then the prices get normalized in the marketplace. But that is something you 
+don't force yourself to do it. It's a market adjustment picture. And Kiran and Sanjeev, they're 
+very sensitive and very elastic to how the market plays out. So, this is something you don't 
+strategize. This is something you play how the market shows up.
+Parikshit Kandpal: At the current level, are you seeing some pushback from the pricing? I mean, do you think there's 
+still some scope for improvement? Or do you think that now maybe we have peaked out and 
+could see some correction?
+Sanjeev Sharma: Any insight to add, Sanjeev, on that?
+Sanjeev Arora: No, I think, again, I can only repeat what Sanjeev is saying, that the market price levels are 
+dominated by demand and supply, one; and the second part is the material prices. So, there could 
+be a possibility that we can see some reduction in the material price bookings if the price goes
+down globally. So, at this point of time, we can say that it has stabilized. But going forward, if 
+global demand decreases and then it has an effect on the material prices, then again, the reset of 
+the button can take place. So, that's my take on it. But if you are looking for an absolute number, 
+I will not be able to give that right now.
+Moderator: We have our next question from the line of Jonas Bhutta from Birla Mutual Fund. Please go 
+ahead.
+Jonas Bhutta: So, I just wanted to understand, has there been any positive impact of this government scheme 
+called RDSS on our EP segment in terms of order flows? Is ABB going to have a role to play 
+there? That's the first question
+Sanjeev Sharma: Can you repeat what government scheme you're referring to?
+Jonas Bhutta: The RDSS.
+Sanjeev Sharma: RDSS. Okay. So, maybe you know something more than we do? What exactly is RDSS?
+Jonas Bhutta: The upgrade of the power distribution network.
+Sanjeev Sharma: This is upgrade of power distribution network.
+ABB India Limited
+August 11, 2023
+Page 17 of 20
+Jonas Bhutta: Yes, so it leads to a host of smart metering, etc.
+Sanjeev Sharma: Smart metering, okay. All right. Kiran, do you have a view on that?
+Kiran Dutt: On the smart metering side, we are not exactly on the tariff meters, we are on the low-voltage 
+side. So, we are not into that product segment at all.
+Jonas Bhutta: So, there's no positive pull-through because there's an upgrade of the entire metering network?
+So, does that have any positive pull-through for our distribution product in the power distribution 
+product lines?
+Sanjeev Sharma: Ganesh, do you have any impact of this changing of the metering and the RDSS part? Do you 
+know of any impact on your business?
+Ganesh Kothawade: There is quite a good opportunity in the distribution segment because when there is an 
+upgradation in the distribution line, there is quite a good requirement which is coming for the 
+medium voltage breaker side. And generally, these jobs are done by the EPC contractors, and 
+we do get the business from EPC contractors and from these utilities. So, there is definitely a 
+scope, but not as much potential as smart metering. But definitely, there is quite a good potential, 
+which is available in the modernization of the distribution network, particularly on the 11 kV 
+side and 33 kV side.
+Jonas Bhutta: And my second question on the EP segment was, sir, you alluded to this business has seen a 
+massive improvement in its operating margin. And a part of that is the lag and lead time between 
+raw material prices increasing and decreasing, and our ability to hold on to pricing in those 
+periods. Do you believe that with this quarter, a large part of that benefit of holding some bit of 
+high-cost pricing, but low-cost inventory is largely now into the margins of the segment?
+Sanjeev Sharma: Kiran, do you have a point of view? Our performance on the bottom line on the product side, is 
+that correlating with inventories that you bought at a lower cost and then you had a better price 
+realization? Is that contributing? Or you think that's not correct?
+Kiran Dutt: I would rather answer in a different way, Sanjeev, on this. It's not a question of what we have 
+purchased at a particular price or something. It's more in terms of the demand for the market in 
+terms of product mix, what's required. It's also related to the earlier question where you were 
+talking about how exactly this distribution can actually support us in terms of volumes. It's an 
+indirect one, what we could say. So, it's a question of how exactly indirectly, whether there's a 
+building coming up, whether there's a segment of an industry which is coming up in the market, 
+which is actually supporting our growth. And when it comes to margin, what we are talking 
+about is the volume, for sure, it is playing a very big role in terms of getting us the margin as 
+well. We also spoke about commodity prices going down or softening up, that's actually 
+supporting us in terms of our margins.
+Sanjeev Sharma: Fair enough. I think the same way plays out for Ganesh's portfolio as well.
+ABB India Limited
+August 11, 2023
+Page 18 of 20
+Moderator: We have our next question from the line of Bhavin Vithlani from SBM Mutual Fund. Please go 
+ahead.
+Bhavin Vithlani: A couple of questions. Could you talk about competitive intensity, because some of the capital 
+group's company in compressors and abrasives have spoken about influx of Chinese companies
+and restarting of the unorganized players. And if you could also give some comment in the 
+motors business. We understand CG Power, EMEIC and WEG going for mega expansion.
+Sanjeev Sharma: So, we did answer about the players in the market, and they will find their own space. And with 
+respect to customer behavior of buying branded products or the nonbranded product, that's a 
+customer behavior topic. But what we see in India is a marked shift in last few years, especially 
+after COVID, wherein the reliability of a supplier and the reliability of the product has become 
+a bigger criterion for decision making. And the market shift has taken place. Apart from demand 
+growth, the market shift has taken place for the people who are the marginal buyers. They have 
+shifted to more reliable and more established players in the market. And that's also part of our 
+growth story in the marketplace. And in India market as diverse as we are, you will always have 
+customer segments which will be transactional at the bottom of it, and then there are people who 
+are really appreciate reliability, availability, maintainability and serviceability of a company 
+which serves them. So, that's how the market gets formed. And we find that the top of the market 
+is becoming larger rather than shrinking, from our perspective.
+Bhavin Vithlani: A follow up. Are we also looking at margins over growth, and consequently, we're seeing some 
+slowdown in revenue growth? Or are we reading too much into it?
+Sanjeev Sharma: We should cross the bridge when we face it, but that's not the situation we are in at this point of 
+time.
+Bhavin Vithlani: Great. Just last question. If you could talk about the exports growth because we spoke about 
+slowdown in the global market. How should one think about the growth rates for the exports?
+Sanjeev Sharma: So, we do 11% to 12% exports. And as I said that story is in the early stages of development as 
+far as India is concerned because as the global team chooses, whichever business chooses to 
+adjust their global footprint, it has an exponential impact on what we will export out of India. 
+And that story has to play out as we go ahead.
+Moderator: We have our next question from the line of Aditya Mongia from Kotak Securities. Please go 
+ahead.
+Aditya Mongia: I'll limit to a single question. The question relates to energy-efficient drive and your optimism 
+on that front. It would be useful to get a sense from you what is the current penetration of this 
+segment inside the country? And how has that been moving over time? I'm just trying to get a 
+sense of how the customer is thinking through kind of coupling up a motor and drive more and 
+more in the country?
+ABB India Limited
+August 11, 2023
+Page 19 of 20
+Sanjeev Sharma: I'll let Sanjeev Arora answer it. So, just to let you know about drive. We have a very low-voltage 
+motor drive as well as medium-voltage drive. And all of them go into critical applications. And 
+Sanjeev, over to you.
+Sanjeev Arora: Thanks, Sanjeev, and thanks for the question. I think this is a very good question, which is close 
+to my heart. And this is picking up in the right direction. Let me first start with this statement. 
+So, earlier, we used to see that a very small segment of the end users, which are technically 
+knowledgeable, were picking this as a case study or a proof of concept. But today, I can tell you, 
+this is growing exponentially. Now in India, yes, there is a scope to grow further. But the concept 
+of motors plus drive is good, because straight away you save 30% of energy. And with the 
+corporate roles being very, very prominent when it comes to the carbon neutrality, sustainability 
+and the initiatives on that, this energy efficiency movement with motors and drives is a key 
+enabler and a low-hanging fruit for all segments and industries in which we operate. So, this is 
+picking up, and we see exponential growth in this piece going forward. And I can also add that 
+when it comes to the energy-efficient motors, we enjoy a very large share of i3, i4 range in the 
+market. So, overall, it will be a game changer for the industries, and we are well prepared in this 
+portfolio.
+Sanjeev Sharma: And Aditya, you can also help us along with your colleagues. So, you must be attending a lot of 
+such calls with other companies. So, all the companies who use these motors and drives, you 
+can ask them if they're using it because that can reduce them 30% energy, and that will go in 
+their bottom line. So, you can, of course, mention this ABB drives and motors they should use 
+because then they have a sure benefit. So, you can also help us the other way.
+Aditya Mongia: So, absolutely. You are the early movers; you should tend to benefit from that. And I look 
+forward to hopefully a deep dive into energy efficiency as part of your presentation at some point 
+of time.
+Moderator: Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference 
+over to Mr. T.K. Sridhar for closing comments. Over to you, sir.
+T. K. Sridhar: Thank you very much. Thank you, once again, everyone, for attending this call, both from the 
+analyst side as well as the management side. It is a Friday evening, so we do not want you to 
+hold you back more in the office, and it's also a long weekend. So, I think with all the discussions 
+what we did, I think we will continue to do our best. And we will come back again to you in the 
+next quarter to have another good call. And before we sort of hang up, I wish you all a very 
+happy Independence Day from our side. So, that's it. Jai Hind.
+Moderator: Thank you. On behalf of ABB India Limited, that concludes this conference. Thank you for 
+joining us, and you may now disconnect your lines.
+(This document has been edited for improving readability)
+ABB India Limited
+August 11, 2023
+Page 20 of 20
+Investor / Analyst contact:
+TK Sridhar
+Chief Financial Officer 
+sridhar.tk@in.abb.com
+Sohini Mookherjea
+Country Communication Manager
+sohini.mookherjea@in.abb.com
+Registered Office:
+ABB India Limited
+Plot No. 5 & 6, 2nd Stage,
+Peenya Industrial Area IV, Peenya
+Bangalore 560058
+Karnataka
+CIN: L32202KA1949PLC032923
+https://new.abb.com/indian-subcontinent