ABB India profit surges 54 per cent; stock follows the suit, sizzles with 18 per cent hike

The power and automation technologies leader ABB India announced its year ending quarterly results on Thursday. Board of Directors of the company has recommended a dividend of Rs. 3.70 per equity share of face value of Rs. 2 each for the year ended on December 31, 2015.

On financial front, the net revenue from operations of ABB reached to Rs 2425 crores in Q3FY16 compared to Rs 1969 crores in Q2FY16 an increase of 23.17 per cent QoQ. The increase in net revenue is from base orders growth of 10 per cent in a market awaiting recovery The EBITDA stood at Rs 263 crores this quarter compared to Rs 156 crores in Q2FY16 an increase of 69 per cent QoQ. The EBITDA margin this quarter stood at 10.85 per cent compared to 7.91 per cent in Q2FY16. The net profit stood at Rs 129 crores in Q3FY16 compared to Rs 58.74 crores in Q2FY16 an increase of 120 per cent QoQ. Efforts towards increased localization coupled with strong focus on cost savings and project execution also helped improve profitability.

The year ending consolidated net revenue from operations increased by 5.26 per cent and reached to Rs 8140 crores compared to Rs 7733 crores same period last year. The net profit for the same period stood at Rs 300 crores compared to Rs 228 crores an increase of 31.23 per cent from same period last year.

Demand in ABB’s major areas of businesses was muted, reflecting ongoing macro uncertainties and challenges. While orders received for the quarter stood at Rs 2,058 crores compared to Rs 2487 crores, the company reached a full year order book of Rs 8,100 crore compared to Rs 7908 crores last year, driven by a 10 percent growth in base orders. Further, an order backlog of Rs 7,946 crore, as on December 31, 2015, provides visibility for future revenue.

The stock of company rallied as much as 18.5 per cent after the company reported the result and closed at Rs 1148.10 per cent an increase of 14.21 per cent compared to its previous close.