High-growth segments, Tier II, III cities to drive long-term gains for ABB

Some large orders were postponed and government capex has seen delays

ABB reported a weak quarter. Revenue was at Rs 2,910 crore, up only 5 per cent year-on-year (Y-o-Y), with operating profit at Rs 540 crore, up 23 per cent and net profit at Rs 440 crore.

 

Order inflow was at Rs 3,340 crore, up 11 per cent Y-o-Y but down 3 per cent quarter-on-quarter (Q-o-Q), taking the order book to Rs 10,000 crore. Gross margin was 43.4 per cent, up 670 basis points (bps) Y-o-Y.

 

The operating profit margin was 18.6 per cent, up 271 bps and down 61 bps Q-o-Q, around the level of expectation.

 

Some large orders were