Solectron Centum surges on ABB deals

DALAL STREET SPIKES

Solectron Centum Electronics (SCEL) spurted 10.8 per cent in intra-day trades to its all-time high of Rs 209 after the company announced of signing a deal with ABB India and ABB USA for export of printed circuit board assemblies.

The stock finally closed at Rs 198.80, gaining per cent 6.05 per cent over its previous close. More than 3.8 lakh shares changed hands at the counter on BSE alone.

SCEL said the initial value of the contract from ABB India and ABB USA is valued at $20 million (Rs 80 crore). The contract is to be executed over the next three years. The stock in the last two trading sessions has now appreciated over 9 per cent since the announcement of the order win.

The company, however, reported a 17 per cent fall in its net profit for the quarter ended December 2004. For the quarter ended December 2004, SCEL's net profit stood at Rs 1.90 crore, even as sales rose 26 per cent to Rs 10.50 crore.