ABB Limited First Quarter Results - by Narasimhan
ABB Limited has announced the first quarter results of FY 08.
The company experienced a decline in sales by 16.53 percent at Rs. 15.35 million. The financials are compared and given in the following table
| Rs Millions | Mar ' 08 | Dec ' 07 | Sep ' 07 | Jun ' 07 | Mar ' 07 |
| Sales | 15,353 | 18,394 | 13,776 | 14,009 | 13,124 |
| Operating profit | 1,727 | 2,602 | 1,724 | 1,638 | 1,282 |
| Interest | 28 | 20 | 16 | 23 | 10 |
| Gross profit | 1,884 | 2,836 | 1,866 | 1,763 | 1,424 |
| Depreciation | 83 | 82 | 79 | 77 | 86 |
| Net profit / loss | 1,177 | 1,808 | 1,157 | 1,086 | 866 |
| Equity capital | 424 | 424 | 424 | 424 | 424 |
| EPS (Rs) | 5.55 | 8.53 | 5.46 | 5.12 | 4.09 |
| OPM (%) | 11.25% | 14.15% | 12.51% | 11.69% | 9.77% |
| GPM (%) | 12.27% | 15.42% | 13.55% | 12.58% | 10.85% |
| NPM (%) | 7.67% | 9.83% | 8.40% | 7.75% | 6.60% |
There has erosion in profits as the net profit is down at Rs 1.17 Million down by 34.90% over the previous quarter. However the company has grown at 16.96% in sales and 35.85% in net profit on YoY basis reflecting the seasonal nature of the industry. The earning per share has also climbed to Rs. 5.55 per share over the corresponding quarter figure of Rs. 4.09 per share.
The order book stands at Rs. 61.75 Billion versus Rs. 50.26 Billion in Q4 of FY 07. During the quarter fresh orders worth Rs. 26.95 Billion were booked representing an increase of over 35%.
The share is currently trading at Rs. 1170 at a Price Earning of over 50. The stock is showing signs of wearing out at top of recent rally prior to the results as seen below. The stock presents a good opportunity for the near term traders to initiate sell transaction. The long term investors and buyers can wait for price correction prior to entering the share. Existing investors may consider securing their profits in any price rally.