ABB Q2 net seen up 31.6% at Rs 28.2cr: Prabhudas Lilladher

Prabhudas Lilladher has come out with its second quarter (July-September) earnings estimates for the capital goods sector. The brokerage house expects ABB to report a 30.1 percent degrowth quarter-on-quarter (up 31.6 percent Y-o-Y) in net profit at Rs 28.2 crore.

Sales of ABB are expected to decrease by 2.6 percent Q-o-Q (down 5percent Y-o-Y) to Rs 1,696.8 crore, according to Prabhudas Lilladher.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 14.4 percent Q-o-Q (up 112.7 percent Y-o-Y) to Rs 93.3 crore.

EBITDA margin or operating profit margin is likely to be at 5.5 percent in September quarter as against 6.3 percent in June quarter and 2.5 percent in a year ago period.

Prabhudas Lilladher's Report on ABB:

We expect execution to remain subdued due to issues faced in certain clients/projects and also since ABB is following policy of cash over revenue. We expect the ordering environment to remain weak due to a weak outlook on investment cycle.

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