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ABB India spurts after strong Q4 earnings

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Capital Market
Last Updated : Feb 19 2014 | 12:00 AM IST

ABB India jumped 12.24% to Rs 663.35 at 13:19 IST on BSE after the company announced strong Q4 December 2013 earnings.

The result was announced during market hours today, 18 February 2014.

Meanwhile, the S&P BSE Sensex was up 181.47 points, or 0.89%, to 20,645.53.

On BSE, 3.82 lakh shares were traded in the counter compared with average volume of 27,711 shares in the past one quarter.

The stock hit a high of Rs 666.80 and a low of Rs 592 so far during the day. The stock hit a 52-week high of Rs 720.20 on 5 December 2013. The stock hit a 52-week low of Rs 448.10 on 30 August 2013.

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

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The stock had underperformed the market over the past one month till 17 February 2014, falling 7.5% compared with the Sensex's 2.85% fall. The scrip had, however, outperformed the market in past one quarter, gaining 1.4% as against Sensex's 0.32% rise.

ABB India's net profit surged 249.37% to Rs 58.59 crore on 5.72% rise in total income to Rs 2204.56 crore in Q4 December 2013 over Q4 December 2012.

Operational EBITDA (earnings before interest, taxes, depreciation and amortization) rose 72% to Rs 172 crore in Q4 December 2013 over Q4 December 2012.

Operational EBITDA margins were reported at 7.9% in Q4 December 2013 compared with 5.3% in Q4 December 2012.

ABB India's net profit rose 30.49% to Rs 179.31 crore on 2.07% rise in total income to Rs 7728.98 crore in the year ended December 2013 over the year ended December 2012.

Operational EBITDA rose 72.13% to Rs 525 crore in the year ended December 2013 over the year ended December 2012.

Operational EBITDA margins were reported at 6.9% in the year ended December 2013 compared with 5.1% in the year ended December 2012.

Operational EBITDA: earning before interest and taxes (EBIT) excluding depreciation and amortization, adjusted for i) unrealized gains and losses on derivatives (forex, commodities, embedded derivatives), ii) reaped gains and losses on derivatives where the underlying hedged transaction has not yet been realised, iii) unrealized foreign exchange movement on receivables / payables (and related assets/liabilities), iv) restructurng and restructuring-related expenses, and v) acquisition-related expenses and certain non-operational items.

ABB India said it generated a healthy operating cash flow in the midst of a tight liquidity market.

The company received orders worth Rs 1666 crore for the quarter ending 31 December 2013, up 5.51% compared with Rs 1579 crore in the corresponding quarter of the previous year. The order book for the full year 2013 stood at Rs 6717 crore. Base orders from a wider spectrum of customers helped offset dearth of large projects in the market. Exports grew annulling the effect of a contraction in the domestic market opportunities. The company continued to tap sectors like renewable energy, data center, railways, grid stability, mining, oil and gas that look increasingly promising, the company said in a statement.

The company said it is well positioned with an order backlog of Rs 7709 crore as on 31 December 2013, providing necessary visibility to future revenues.

Key highlights include 50 megawatts (MW) solar power plant commissioned in record time, successful test of 1200 kilovolt (kV) ultra high voltage transformer, all with an eye for maintaining market share end s keen focus on cost for increased efficiencies. The company inaugurated GIS (gas insulated switchgear) / PASS (plug and switch system) and dry type and distribution transformer rectories in November as part of its strategy to improve competitiveness and remain aligned with the evolving trends in the market.

"2013 witnessed a steady improvement in margins of the company. While market uncertainties continue, our intensified efforts to remain cost competitive and strengthen project management have borne visible results. Our capacities are ready to address the next phase of growth as the market improves - the new PASS, GIS factory reinforces our technology focus and commitment to the India growth story. Overall, we remain aligned to charting a course of profitable growth backed by business led collaboration and relentless execution," said Bazmi Husain, Managing Director ABB India.

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: Feb 18 2014 | 1:24 PM IST

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