ABB Q3 PAT seen up 3.79 times at Rs 55 cr

Engineering firm ABB is expected to report a profit after tax of Rs 55 crore in third quarter of CY11, a massive growth of 3.79 times as compared to Rs 11 crore in the corresponding quarter of last fiscal.

Net sales are likely to go up by 18% to Rs 1,570 crore from Rs 1,334 crore during the same period.

EBITDA is seen going up 3.74 times to Rs 92 crore in the July-September quarter of 2011 versus Rs 19 crore in a year ago period.

Operating profit margin is seen improving at 5.89% versus 1.46% year-on-year.

Backlog execution to drive revenue growth

Top line growth expected to be driven by power systems and process automations segment
* Power products segment is expected to witness muted growth amid delayed off-take
* Power products segment contributes around 25% to the total revenues

Margins expected to revert to the norm after a sharp dip in Q3CY10 due to one-offs
* Q3CY10 saw a lot of provisioning on account of RE (rural electrification) projects
* Despite the absence of provisioning, increased cost pressure will continue to weigh down upon margins

Bottom line jump due to low base effect

Order inflows is expected to have grown by double digits YoY in Q3CY11