ABB Q1 APAT seen down 27% at Rs 65 cr

ABB is expected to report adjusted profit after tax of Rs 65 crore for the January-March quarter 2011, down 27% as compared to Rs 88.9 crore in a year ago period.

Profit after tax is seen going up by 8.9 times to Rs 65 crore (without adjusted). Company had an exceptional loss in same quarter the previous year, according to CNBC-TV18 estimates.

Net sales are likely to go up by 11% at Rs 1620 crore from Rs 1455.9 crore and operating profit margin is seen improving at 6.48% versus 5.85% on year-on-year basis.

CY10: Really Tough year 

* In CY10 PAT was down 82% to just over Rs 63 crore
* Order inflow fell 27% at Rs 6350cr (Orderbook ended flat at Rs 8436 crore)
* Margins for the year stood at 2.5% (Down from 9.3%)
* Pressure mainly from
  Higher raw material & staff costs
  Costs associated with exit from rural electrification biz
  Weak order inflow  

Key Monitorables 
* Signs of continued improvement in the power biz, seen in Q4 
* Execution pick up and growth in automation
* Any pick up in order inflow (Mgmt banking on renewables, power generation and transmission)

Q1 will see continued pressure from
* Rural Electrification still had a backlog of Rs 70 crore
* Commodity pressures