An unfavourable environment weighs on ABB INDIA, which sees a downgrad...

The independent financial analyst theScreener just requalified the general evaluation of ABB INDIA (IN), active in the Industrial Machinery industry. As regards its fundamental valuation, the title still shows 1 out of 4 stars and its market behaviour is seen as defensive. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Neutral. As of the analysis date February 11, 2022, the closing price w...

MOSL: ABB (Buy)-Robust order inflows indicate recovery is on track

ABB: Robust order inflows indicate recovery is on track (ABB IN, Mkt Cap USD5.3b, CMP INR1863, TP INR2110, 13% Upside, Buy)   Balance Sheet strength intact ABB's 3QCY21 revenue came in 5% below our estimate, with a miss largely on account of the Process Automation business. However, with a higher share of exports and services, favorable sales mix, and pricing action, EBITDA margin stood at 9.5% (est. 7.5%), accompanied by gross margin expansion. The management indicated strong growth in sh...

MOSL: ABB (Buy)-In line result; order inflows indicate recovery is on ...

ABB: In line result; order inflows indicate recovery is on track (ABB IN, Mkt Cap USD4.8b, CMP INR1684, TP INR2000, 19% Upside, Buy)   Balance Sheet strength intact ABB's 2QCY21 result stood in line with our expectations. While the demand recovery was strong in Jun'21, it lost 3-3.5 weeks of operations, which is reflected in its performance. Capacity utilization has now scaled up to 80-85% across its different manufacturing locations, indicating that a gradual recovery is in progress. Whil...

ABB India's Q4CY19 results (Underperformer) - Miss on earnings, low vi...

Q4CY19 result highlights ABB’s adj. PAT from continued ops at Rs1.34mn (+4.4% yoy): due to weak operational performance. Reported PAT declined 81% yoy to Rs387mn led by charge of Rs697mn on re-measurement of inventory of discontinued solar inverter business. Muted revenues: 1% yoy decline in revenues to Rs19.3bn due to 20% yoy decline in Industrial Automation to Rs4.4bn led by macro slowdown & cautious business environment. Growth was across other segments with Electrification products +11% ...

ABB India's Q3CY19 results (Underperformer) - Strong performance, but ...

Q3CY19 result highlights ABB’s PAT from continued ops at Rs788mn (+120% yoy): led by strong operational performance (low base). Pick up in execution: resulted in 17% yoy growth in revenues to Rs17.24bn. Growth was robust across segments with Robotics & motion growing at 13% yoy to Rs6.7bn, Electrification products +24% yoy to Rs7.1bn and Industrial automation +17% yoy to Rs4.1bn. Revenue was further augmented by growth in services and exports.  Revenues (incl PG) +9% yoy to Rs27.53bn. OPM +...

MOSL: ABB (Sell)-Execution to pick up on account of strong order inflo...

ABB: Execution to pick up on account of strong order inflows; Maintaining Sell given expensive valuations (ABB IN, Mkt Cap USD4.3b, CMP INR1395, TP INR1240, 11% Downside, Sell)   Below estimated performance in continued business: Revenue increased 4% YoY to INR17.3b in 2QCY19 (below our est. of INR18.5b). EBITDA grew 42% YoY to INR1.2b (below our est. of INR1.5b), while recurring PAT rose 59% YoY to INR697m (below our est. of INR0.9b). ABB has entered into an agreement with Hitachi globally...

ABB's Q1CY19 results (Underperformer) - Strong performance; all priced...

Q1CY19 result highlights ABB’s PAT from continued operations at Rs890mn (+95% yoy): led by strong revenues and margins. Execution pick up: resulted in 18% yoy growth in revenues to Rs18.3bn. Growth was particularly strong in Robotics & Motion (RM) which grew 34% yoy to Rs8bn. Further, sustained growth in services (+21% yoy; effective conversions from process industries, oil & gas and auto) aided revenues. Revenues (incl PG) +9% yoy to Rs27.45bn. OPM +198bps yoy to 6.8%: led by higher utilis...

MOSL: ABB (Sell)-Robotics & Motion drives strong performance-Maintaini...

ABB: Robotics & Motion drives strong performance; Maintaining Sell given expensive valuations (ABB IN, Mkt Cap USD4.4b, CMP INR1449, TP INR1190, 18% Downside, Sell)   Healthy growth in continued business: Revenue increased 18% YoY to INR18.5b in 1QCY19. EBITDA grew 63% YoY to INR1.5b, while PAT rose 95% YoY to INR890m. ABB has been showing 'power grids' as a discontinued business, as it has entered into an agreement with Hitachi - at the global level - to sell this business. During the quar...

ABB India's Q4CY18 results (Underperformer) - Uncertainty on India PG ...

Q4CY18 result highlights ABB’s PAT post discontinued operations at Rs1.98bn (+15% yoy): led by strong revenues and margins. CY18 continued ops revenues +10% yoy to Rs66bn, while margins +20bps to 5.8%, EBITDA +12.5% yoy to Rs3.8bn and PAT at Rs2.5bn (+13% yoy). Execution picked up: driving 15% yoy growth in revenues (ex-power grid) to Rs19.4bn. Growth was particularly strong in Robotics & Motion (RM) which grew 31% yoy to Rs7bn. Further, sustained growth in exports & services aided revenues....

MOSL: ABB (Sell)-Superior execution/mix/cost control in continued busi...

(ABB IN, Mkt Cap USD3.7b, CMP INR1229, TP INR1020, 17% Downside, Sell) Continued business delivers healthy growth: Revenue increased 15% YoY to INR19.7b in 4QCY18. EBITDA grew 48% YoY to INR2.2b, while PAT increased 58% YoY to INR1.3b. For CY18, sales/EBIDTA/PAT from the continued business grew 6%/10%/13%. We note that ABB has shown ‘power grid’ as a discontinued business as it has entered into an agreement with Hitachi – at global level – to sell this business. During the quarter, discontinu...

ABB India's Q3CY18 results (Underperformer) - Strong quarter; intake u...

Q3CY18 result highlights ABB’s PAT at Rs1.08bn (+30% yoy): led by strong revenues and margins. Execution picked up: Revenues +32% yoy to Rs24.9bn led by sustained execution of the Raigarh-Pugalur HVDC order (50% complete) as also uptick across segments. OPM +140bps yoy to 6.8%: led by positive operating leverage, cost efficiencies. We note that gross margins were flat despite higher share of project revenues (HVDC order), forex impact as also rise in commodity prices. Core operational margi...

MOSL ABB (Sell)-Operational performance beats expectation

ABB: Operational performance beats expectation (ABB IN, Mkt Cap USD3.5b, CMP INR1209, TP INR990, 18% Downside, Sell)   Operational performance beats expectations: 3QCY18 revenue rose 31% YoY to INR25.2b, ahead of our estimate of INR23.8b. EBIDTA margin of 7.7% (+70bp YoY) was ahead of our estimate of 7.2%. EBITDA grew 45% YoY to INR1.94b, ahead of our estimate of INR1.7b, supported by better revenue mix and operating leverage. PAT of INR1.1b was also above our estimate of INR980m. For 9MCY1...

Northern Lights

ABB (Buy, TP: SEK261.00) - I want to break free

We initiate coverage of ABB with a BUY and SEK261 target price. ABB has been unable to maximise shareholder value in its current structure, but we believe the likelihood of structural changes has increased. We also believe that organic growth is key for the share price and we see solid fundamentals for strong growth throughout our forecast period, which should minimise potential downside from here.

ABB India's Q2CY18 results (Underperformer) - Pick up in execution; or...

Q2CY18 result highlights ABB’s PAT at Rs1bn (+36% yoy): was below estimates due to lower than expected other income and higher than expected interest cost. Execution picked up: Revenues +22.3% yoy to Rs26.8bn led by pick up in execution particularly the Raigarh-Pugalur HVDC order which is starting to mature in its execution cycle. Services (13-14% of revenues) and exports (15% of revenue) continued to see traction. OPM +86bps yoy to 6.1%: led by low base and positive operating leverage. Gro...

MOSL: ABB (Sell)-Miss on margins dampens performance

ABB: Miss on margins dampens performance (ABB IN, Mkt Cap USD3.5b, CMP INR1140, TP INR950, 17% Downside, Sell)   Operational performance below expectations: 2QCY18 revenue rose 22% YoY to INR27.1b, broadly in line with our estimate of INR27b. EBIDTA margin of 7.2% (+60bp YoY) was below our estimate of 7.8%. EBITDA grew 33% YoY to INR1.96b, below our estimate of INR2.1b, impacted by an adverse revenue mix, an increase in raw material prices and weakening of the rupee. PAT of INR1.0b, too, mi...

MOSL: ABB (Sell) - Performance impacted by weaker-than-expected margin...

ABB: Performance impacted by weaker-than-expected margins (ABB IN, Mkt Cap USD4.0b, CMP INR1270, TP INR1060, 16% Downside, Sell)   Operational performance below expectations: 1QCY18 revenue rose 17.4% to INR25.3b, broadly in line with our estimate of INR25.8b. EBIDTA margin of 7.5% (flat YoY) was below our estimate of 9.6%. EBITDA grew 17.4% YoY to INR1.9b, below our estimate of INR2.5b, impacted by an adverse revenue mix, an increase in raw material prices and strengthening of EUR. PAT of ...

ABB India's Q4CY17 results (Underperformer) - Margin miss continues; b...

Q4CY17 result highlights ABB’s PAT at Rs1.7bn (+5% yoy): was below estimates due to lower than expected revenues and margins. ABB restated Q4CY16 EBITDA/PAT by -5%/+3% to Rs2.4bn/Rs1.6bn for Ind-AS. Execution picked up: Revenues +11.5% yoy to Rs27.4bn as GST related issues receded driving an uptick in execution. Exports (15% of revenues) and services (13% of revenues) continued to see strong traction. OPM -46bps yoy to 9.3%: led by declined in gross margins by 300bps. This was partly offset...

MOSL: ABB (Sell)-Operational performance marginally below expectations

ABB: Operational performance marginally below expectations (ABB IN, Mkt Cap USD5.2b, CMP INR1590, TP INR1240, 22% Downside, Sell)   Operational performance below expectations: 4QCY17 revenue rose 11% to INR27.8b, broadly in line with our estimate of INR27.5b. EBIDTA margin of 10.6% (-100bp YoY) too was below our estimate of 11.2%. EBITDA grew by a muted 1.4% YoY to INR2.9b, below our estimate of INR3.1b, led by an adverse revenue mix and execution of lower-margin orders. PAT of INR1.7b too ...

MOSL: ABB (Sell)-GST implementation-led execution slowdown impacts per...

​ABB: GST implementation-led execution slowdown impacts performance(ABB IN, Mkt Cap USD4.6b, CMP INR1400, TP INR1230, 12% Downside, Sell)Operational performance below expectations: 3QCY17 revenue declined 7% YoY to INR19.2b, missing our estimate of INR23.1b. Adjusted EBIDTA margin of 5.4% (-40bp YoY) too was below our estimate of 8.5%. Adjusting for forex gain of INR300m, EBITDA declined 12% YoY to INR1.0b, below our estimate of INR2.0b. EBIDTA was impacted by negative operating leverage durin...