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ABB: Large Orders Remain Muted - Views on News from Equitymaster
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ABB: Large Orders Remain Muted
Aug 2, 2017

ABB Ltd has announced second quarter results for calendar year 2017 (It is a December ending company). The company has reported a 6% YoY growth in sales. Profit after tax has increased by 35% YoY. Here is our analysis of the results.

Performance summary
  • Sales for the company increased by 6% YoY during 2QCY17.
  • Operating profit increased 34.5% YoY during the quarter as margins increased by 1% to 4.9% YoY.
  • Net profits during the quarter saw a jump of 35%.

    Financial performance snapshot
    (Rs m) 2QCY16 2QCY17 Change 1HCY16 1HCY17 Change
    Total operating income 21,982 23,293 6.0% 42,979 46,228 7.6%
    Expenditure 21,127 22,142 4.8% 40,634 43,696 7.5%
    Operating profit (EBDITA) 856 1,151 34.5% 2,345 2,532 8.0%
    Operating profit margin (%) 3.9% 4.9%   5.5% 5.5%  
    Other income 579 648 11.9% 968 1,194 23.3%
    Interest 197 231 17.0% 420 442 5.3%
    Depreciation 357 383 7.4% 716 759 6.1%
    Profit before tax 881 1,185 34.6% 2,177 2,525 16.0%
    Tax 324 435 34.0% 766 874 14.1%
    Profit after tax/(loss) 556 751 34.9% 1,411 1,650 17.0%
    Net profit margin (%) 2.5% 3.2%   3.3% 3.6%  
    No. of shares         211.9  
    Basic & diluted earnings per share (Rs)*         18.8  
    P/E ratio (x)*         75.0  

    * On a trailing 12 months basis


    Segment-wise performance
    (Rs m) 2QCY16 2QCY17 Change
    Robotics and Motion      
    Revenue 4,591 4,588 -0.1%
    % share 20% 19%  
    PBIT margin 2.5% 6.7%  
    Electrification Products      
    Revenue 5,373 6,446 20.0%
    % share 23% 27%  
    PBIT margin 10.8% 10.0%  
    Industrial Automation      
    Revenue 3,562 3,535 -0.8%
    % share 15% 15%  
    PBIT margin 8.1% 8.9%  
    Power Grids      
    Revenue 9,630 9,601 -0.3%
    % share 42% 40%  
    PBIT margin 4.7% 7.2%  
    Total*      
    Revenue 23,156 24,169 4.4%
    PBIT margin 6.2% 8.1%  

    * Excluding inter-segment adjustments & unallocated revenues

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