Quote on ABB India Result Update by Milan Desai, Angel Broking Ltd
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Below is quote on ABB India Result Update by Mr. Milan Desai, Lead Equity Analyst, Angel Broking
ABB India’s top line for the Q2CY21 came in at Rs 1,425 Cr, up 45% YoY but down 13% QoQ. As per the company, execution picked up strongly in June which offset the muted offtake in the initial part of the quarter (due to the 2nd wave). Order Inflows were up by 41% YoY to Rs 1,689 Cr (-7% QoQ) and the backlog stands at Rs 4,583. EBITDA came in at Rs 95 Cr and EBITDA Margins declined by ~147% QoQ to 6.6% on account of higher other expenses because of the lockdown during the 2md wave. PAT came in at Rs 70 Cr, which is slightly lower than expectations on account of lower than expected top-line and the resultant impact on margins.
As per the earnings release, the management has acknowledged that the market is expected to recover in India but pointed out certain near-term challenges like the resurgence of cases in domestic as well as certain larger markets as well as the impact of commodity prices. They are cautiously optimistic on the order wins front and would focus on sectors where the Capex cycle is overdue. We have a positive view on ABB India.
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