ABB dips post Q1 results

The stock dipped 8% to Rs 1,241 after the company said its order inflows during Q1 are 1% lower at Rs 1,830 crore than the year ago.

ABB has dipped 8% to Rs 1,241 on the BSE in early morning trade after the company said its order inflows during the March quarter (Q1) are 1% lower at Rs 1,830 crore than the year ago. The company received orders worth of Rs 1,856 crore in the first quarter of 2015.

The order backlog fell 1.8% from Rs 7,946 crore as on December 31, 2015 to Rs 7,804 crore as on March 31, 2016.

Large orders, especially those based on industry capex, remained scarce as customers continued to delay investment decisions on low demand and under-utilized capacity, ABB said in a press release.

The company reported a 31.5% year on year (YoY) jump in first quarter profits to Rs 71 crore against Rs 54 crore in the corresponding quarter of previous year. Revenues increased by 10% to Rs 2,000 crore on YoY basis.

ABB said, continuous focus on localization and engineering, while improving operational efficiencies contributed to the steady growth in profitability.

Operational efficiencies lead to yoy margin improvement, it added.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margins 46 basis points to 8.5% from 8.04% during the quarter.

At 09:55 am, the stock was down 5% to Rs 1,283 on the BSE as compared to 0.29% decline in the S&P BSE Sensex. A combined 129,524 shares changed hands on the counter on the BSE and NSE.