Prabhudas Lilladher's research report on ABBABB reported sales at Rs24.2bn (PLe: Rs23.9bn), up 8.3% YoY. Better value offering coupled with extensive customer outreach in new markets remained the key drivers for improved revenue growth. Sales of Power Products, Automation Products and Process Automation increased 18%, 9% and 13% respectively, while sales of Power Systems declined by 19% YoY. EBITDA was up 46.2% YoY at Rs2.6bn (PLe: Rs1.9bn), EBITDA margin came in at 10.9%, up 290bps YoY (PLe: 8.3%). Efforts towards increased localization coupled with strong focus on cost savings and project execution helped improve profitability. Adj. PAT was up 53.8% YoY at Rs1.2bn (PLe: Rs909m). ABB’s management believes it has consolidated its position over the last few years and is ready to benefit from market upturn as and when it happens. The company continues to focus on introduction of new products and tailor the technology to meet Indian requirement. We expect stock to deliver 36% earnings CAGR over CY15‐17E. Maintain Accumulate. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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