X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
ABB Ltd: Short cycle orders drive growth - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

ABB Ltd: Short cycle orders drive growth
May 17, 2013

ABB Ltd has announced first quarter results of financial year 2013 (It is a December ending company). The company has reported 10% YoY growth in sales. However, bottom line has declined by 10.7% YoY. Here is our analysis of the results.

Performance summary
  • Sales increased by 10% YoY during 1QCY13. Strong performance from the power systems (+32.2% YoY) and discrete automation & motion (+6.8% YoY) segments boosted the top line growth during the quarter. Strong opportunity from the renewable space was one of the key growth drivers during the quarter. Faster execution of short cycle orders also helped revenue growth.
  • Operating profits increased 9.2% YoY during the quarter due to strong performance at the topline level. However, operating margins were relatively flat on a YoY basis.
  • Net profits decline 10.7% YoY during the quarter, due to fall in other income and rise in interest expenses. Other income fell by 25.8% YoY while interest expenses increased by 265.7% YoY. Interest expenses are increasing because of increase in retention money in long cycle orders. Higher retention money stretches the working capital cycle and increases the reliance on debt.
  • Order inflow during the quarter stood at Rs 15.3 bn, compared to an inflow of Rs 16.6 bn in 1QCY12, representing a fall of 7.9% YoY. The order backlog at the end of the quarter stood at Rs 82.2 bn.

To Read the Full Story, Subscribe or Sign In


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

ABB INDIA LTD. SHARE PRICE


Feb 16, 2018 (Close)

TRACK ABB INDIA LTD.

  • Track your investment in ABB INDIA LTD. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON ABB INDIA LTD.

ABB INDIA LTD. 8-QTR ANALYSIS

COMPARE ABB INDIA LTD. WITH

MARKET STATS