Tide may be turning for ABB India

Order book at Rs 12,094 cr secures over a year of revenue

ABB India’s quarterly numbers have bettered the Street’s expectations for the second time in a row. The company’s June quarter (Q2) net profit expanded 35 per cent to Rs 75 crore year-on-year, while revenues were up 6 per cent at Rs 2,361 crore. ABB follows the January-December financial year.

However, after the adoption of new accounting standards (IndAS), operating margins remained depressed. The Q2 number at around 7 per cent seemed higher than the adjusted year-ago level of 5.8 per cent, but lower than 7.9 per cent in Q1. The 6-7 per cent increase in employee and other expenses may have