ABB India Ltd. share price target

Be it order inflows or be it revenues: GST spoils the show. Q3CY17, thereby, qualifies for an aberration. With a backlog at Rs121bn, 1.3xCY18 book-bill, however, the revenue recognition should be stronger in days to come. Yet half of...

Order Backlog Comforts Revenue Visibility: Order inflows for 9MCY17 de-grew marginally by 3.8% on YoY basis to Rs.66bn and the same was down in Q3CY17 by 34.8% to Rs.19bn; however, adjusting for large railway order in the previous year, Q3CY17 inflows were flat.

during the quarter. PAT of INR0.5b too missed our estimate of INR0.9b. Gross margin improves 220bp YoY to 36.5% at all-time high: Gross margin improved 220bp YoY to 36.5%, driven by initiatives undertaken over the past 3-4 years toward increased localization, improved operational efficiency and...

Earnings posted CAGR of 28% over CY13-16, driven by closure of loss-making rural electrification jobs and exponential growth in renewables. Renewables now constitutes ~17% of sales and has grown 4-fold in the last 4 years.

ABB's Q2CY17 order inflow at Rs 23 bn increased 13% YoY, better than our/street estimates. Order inflow growth was driven by strong growth of 13% in base orders, 15% in exports and 20% growth in services. Order backlog at Rs 121 bn was up 56% YoY.

With all-time high order backlog of Rs.120bn, the revenue recognition should have been stronger. That was not the case. Agreed, half of orders are medium-to-long cycle. Yet even by the most conservative standards, a 6% growth is doubtless sub-par. Minus Electrification products, the remaining segmentsrobotics and motion, industrial automation and power grids were flat. The projects, as it is evident, are yet to drive the show. For instance, the North East Agra HVDC project is about to hit...

Revenue grew by 2.24% to Rs. 2191.49 Cr in Q2CY17 when compared to the previous quarter. Revenue grew by 2.24% to Rs. 2191.49 Cr in Q2CY17 when compared to the previous quarter.

Strong Order Backlog Offers Revenue Visibility; Inflows Anticipated:Order booking for Q2CY17 grew by 12.8% to Rs. 23 Bn and the same for H1CY17 grew by 20.0% to Rs. 46 Bn taking the total order backlog to Rs. 121 Bn by end of Q2CY17 which includes Rs. 3.5 Bn transmission order and rest of the book splitequally between large and short cycle orders.

ff ABB India reported strong earnings in 2QCY17. Its PAT grew by 34.9% YoY at Rs0.75bn in 2QCY17 while revenue rose by 6.0% YoY to Rs23.3bn in line with our estimate owing to better execution in Electrification Products (+20% YoY). ff ABB India was among the earliest players to tap solar opportunity...

ABB India continues to report steady improvement in margins led by operational efficiencies and focus on products. Though its EBITDA margin rose by 110bps YoY to 6.1%, EBITDA margins were impacted due to one-off rise in other expenses towards product development. Initiatives undertaken in past 3-4 years in terms of increased localization, rationalization of supply chain, improving efficiency, better project management and lower input prices aided ABB to report steady improvement in margins. Further, customized offerings, continued focus on cost, differentiated portfolio in line with India's vision of growth through digital technologies supported YoY improvement in net working capital position. PBIT margins for Robotics & Motion rose by...