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ABB India gains after Q1 results

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Capital Market
Last Updated : May 05 2014 | 11:51 PM IST

ABB India rose 1.47% to Rs 847 at 9:15 IST on BSE after net profit rose 20% to Rs 52 crore on 8% decline in revenues to Rs 1810 crore in Q1 March 2014 over Q1 March 2013.

The company announced the result on Sunday, 4 April 2014.

Meanwhile, the BSE Sensex was down 14.32 points, or 0.06%, to 22,389.57.

On BSE, so far 730 shares were traded in the counter, compared with an average volume of 85,561 shares in the past one quarter.

The stock hit a high of Rs 842.45 and a low of Rs 837 so far during the day. The stock hit a 52-week high of Rs 869.90 on 2 April 2014. The stock hit a 52-week low of Rs 448.10 on 30 August 2013.

The stock had underperformed the market over the past one month till 2 May 2014, sliding 2.39% compared with the Sensex's 0.65% decline. The scrip had also outperformed the market in past one quarter, rising 44.03% as against Sensex's 9.21% rise.

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The large-cap company has an equity capital of Rs 42.38 crore. Face value per share is Rs 2.

ABB India said that solid execution and continuous cost optimization helped improve profitability. Revenue for the corresponding period in 2013 was higher at Rs 1964 crore supported by the execution of one large order from renewable sector.

Operational EBITDA (earnings before interest, taxes, depreciation and amortization) margins were reported at 7.6% in Q1 March 2014, higher than 6.6% in Q1 March 2013.

"We had a satisfactory first quarter despite an indecisive investment climate. A balanced portfolio of customer offerings and relentless execution has helped us deliver profitable growth. Our new and upgraded production facilities, coupled with cost efficient technologies will further strengthen our position as the market revives," said Bazmi Husain, Managing Director, ABB India.

The company received orders worth Rs 1982 crore during the quarter ended 31 March 2014, compared to an order intake of Rs 1540 crore for the same period last year. During the quarter the company received large orders for transformers, substations as well as medium voltage drives and traction converters. The company continued its progress towards localisation and value chain optimisation to remain competitive.

The company's order backlog remain strong at Rs 7876 crore at the end of the quarter as against Rs 8257 crore for the corresponding period in 2013.

ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 150,000 people.

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First Published: May 05 2014 | 9:17 AM IST

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