ABB India , the subsidiary of Swiss power equipment major ABB, will announce its second quarter (April-June CY14) earnings today. Analysts expect a moderate revenue growth during the quarter led by the products division and weak order intake in the last few quarters. Total income is expected to rise by 3 percent to Rs 1,804 crore in June quarter from Rs 1,751 crore in same quarter last year while profit after tax may grow 32.7 percent on yearly basis to Rs 52.6 crore in second quarter of current calendar year 2014 led by operational performance, according to CNBC-TV18 poll estimates. Operating profit (EBITDA) may increase 17.2 percent on yearly basis to Rs 126 crore in April-June quarter and margin is likely to expand 80 basis points to 7 percent in the quarter gone by that will be closely watched by street as in last couple of quarters, the company had been reporting margin expansion led by benefits of increased localisation. ABB continued to focus on increased localisation and cost optimisation, whereby its direct raw material costs dipped to 68 percent of revenue, from a peak of 81 percent in Q4CY10. Key factors to watch out for are short cycle orders, pace of project execution, continued improvement in EBITDA margin and management commentary on investment revival.
No comments:
Post a Comment