ABB India Q4 net jumps 53.75% at Rs 129.40 cr; shares zoom 13%
Heavy electrical equipment maker ABB India on Thursday reported a better-than-expected fourth quarter earnings that topped analyst expectations on both top and bottom line growth. The company has posted a growth of 53.75 per cent in its standalone net profit at Rs 129.40 crore for the quarter ended December 31, 2015, helped by spurt in sales and lower finance costs. The company had posted the standalone net profit of Rs 84.16 crore in corresponding quarter of previous fiscal, said ABB India in a filing to BSE. According to analysts polled by CNBC-TV18, the company was seen reporting a profit of Rs 98 crore on revenue of Rs 2,428 crore. The total revenue of the company rose 8.1 per cent to Rs 2,435.89 crore in Q4 FY15 from Rs 2,253.10 crore in Q4 FY13. During the quarter under review, the company received order worth Rs 2,058 crore, while the company reached a full year order book of Rs 8,100 crore, driven by a 10 percent growth in base orders. The orders from renewables (wind and solar) and railways segment more than doubled as compared to 2014 but was offset to a large extent by the silent investment pattern prevalent in the industry. An order backlog of Rs 7,946 crore, as on December 31, 2015, provides visibility for future revenue, the company said in the filing to exchange. Commenting on earnings, ABB India, Managing Director and CEO, Sanjeev Sharma said, “ABB has continued creating value for its stakeholders in a challenging year. Our technology driven solutions portfolio aligns very well with our nation’s priorities to develop sustainable power and productive industrial infrastructure. Our exclusive technology symposium, ABB Automation and Power World, held in 2015 in New Delhi, saw active participation by more than 4,000 customers and thought leaders who are leading the way to our nation's future.” Boosted by the earnings, the board of directors of the company 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. Following the earnings numbers, shares of company rallied 13.4 per cent to Rs 1140.00 apiece on BSE at 15: 10 hours.