ABB India retreats after intraday surge on high volume

ABB India gained 4.86% to Rs 660 at 12:44 IST on BSE, paring steep intraday gain after the company announced strong Q3 result during market hours today, 6 November 2013.

Meanwhile, the S&P BSE Sensex was down 56.46 points, or 0.27%, to 20,918.33

The stock turned volatile after announcing Q3 result and saw high volume. On BSE, 3.98 lakh shares were traded in the counter compared with average volume of 22,095 shares in the past one quarter.

The stock surged as much as 10.88% at the day's high of Rs 697.90 so far during the day. The stock fell as much as 0.7% at the day's low of Rs 625 so far during the day. The stock hit a 52-week high of Rs 830 on 12 November 2012. The stock hit a 52-week low of Rs 448.10 on 30 August 2013.

The stock outperformed the market over the past one month till 5 November 2013, rising 14.79% compared with the Sensex's 5.32% rise. The scrip also outperformed the market in past one quarter, advancing 31.77% as against Sensex's 9.34% rise.

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

ABB India reported 78.14% surge in net profit to Rs 38.07 crore on 1.25% decline in total income to Rs 1786.82 crore in Q3 September 2013 over Q3 September 2012. Revenue fell 1.34% to Rs 1762 crore in Q3 September 2013 over Q3 September 2012. The company said it continued to follow a policy of cash over revenue in its businesses to mitigate the credit risk in the market. Operational EBITDA (earnings before interest, taxation, depreciation and amortization) surged 40.51% to Rs 111 crore in Q3 September 2013 over Q3 September 2012.

Focused initiatives in streamlining operations, optimizing costs and increasing localization are yielding sustainable improvements. Saving from these initiatives has helped balance the adverse impact of continuing price erosion and weak market condition, ABB India said.

ABB India's orders rose 4.94% to Rs 1762 crore in Q3 September 2013 over Q3 September 2012. Emerging sectors like renewables, exports and rail continued to grow faster than the conventional segments, ABB India said. The company's order backlog stood at Rs 8252 crore as at 30 September 2013 compared to Rs 9062 crore as at 30 September 2012.

The economic environment in India remains muted and capex investments continue to be deferred. While the renewed momentum in reforms is a welcome measure, the markets are yet to realize its tangible benefits. In the meantime, we continue to pursue new growth opportunities, indigenize our portfolio and innovate to stay ahead said Bazmi Husain, Managing Director, ABB India.

Meanwhile, ABB India said that the Hon'ble High Court of Bombay vide its Order dated 27 September 2013 has sanctioned the Scheme of Amalgamation of Baldor Electric India (Baldor) with the ABB India. The Scheme has become effective from 1 November 2013 with appointed date being 1 April 2012. Baldor was a wholly owned subsidiary of ABB India. The financial results of current year incorporates the operating results of Baldor, ABB India said.

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.

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