 "ABB India surges on strong Q4 results")
ABB has moved higher by 9% to Rs 1,099 on the National Stock Exchange (NSE) after the company reported net profit of Rs 129 crore against an average analyst expectation of Rs 89 crore for the fourth quarter ended December 31, 2015 on back of strong operational performance and lower interest cost.
The heavy electrical equipment maker had profit of Rs 84 crore in the same quarter year ago. It had profit of Rs 59 crore in September quarter.
Net sales of the company grew 8% at Rs 2,384 crore on yoy basis. Interest burden declined 31% to Rs 20.74 crore over the previous year quarter.
Operating profit margin improved by nearly 300 basis points at 10.85% in December quarter from 8% in the corresponding quarter of previous year.
ABB said the base orders drive revenue growth in a market awaiting recovery, while sustained focus on operational efficiencies support profitable growth.
The service business, at nearly Rs 1,000 crore for 2015, posted a good double digit growth in orders compared to last year, as customers’ focus on quality, safety and maintenance increased and decisions on new investments and large orders were delayed, it added.
As on December 31, 2015, the company has an order backlog of Rs 7,946 crore.
The board has recommended a dividend of Rs 3.70 per equity share of face value of Rs 2 each for the year ended on December 31, 2015.
At 11:21 AM, the stock was up 8% at Rs 1,089 on the NSE as compared to 0.65% rise in Nifty 50 index. The trading volumes on the counter jumped over 10-fold with a combined 492,303 shares changed hands on the NSE and BSE.
The heavy electrical equipment maker had profit of Rs 84 crore in the same quarter year ago. It had profit of Rs 59 crore in September quarter.
Net sales of the company grew 8% at Rs 2,384 crore on yoy basis. Interest burden declined 31% to Rs 20.74 crore over the previous year quarter.
Operating profit margin improved by nearly 300 basis points at 10.85% in December quarter from 8% in the corresponding quarter of previous year.
ABB said the base orders drive revenue growth in a market awaiting recovery, while sustained focus on operational efficiencies support profitable growth.
The service business, at nearly Rs 1,000 crore for 2015, posted a good double digit growth in orders compared to last year, as customers’ focus on quality, safety and maintenance increased and decisions on new investments and large orders were delayed, it added.
As on December 31, 2015, the company has an order backlog of Rs 7,946 crore.
The board has recommended a dividend of Rs 3.70 per equity share of face value of Rs 2 each for the year ended on December 31, 2015.
At 11:21 AM, the stock was up 8% at Rs 1,089 on the NSE as compared to 0.65% rise in Nifty 50 index. The trading volumes on the counter jumped over 10-fold with a combined 492,303 shares changed hands on the NSE and BSE.
