ABB has been the top gainer on the bourses yesterday, with the market celebrating the company’s truly good performance, that too, after some time.

The company, for its fourth quarter ( Dec year ending) posted a very good set of numbers. Higher sales – up 8% (YoY) at Rs.2384 crore and a 31% drop in its interest outgo helped the company end the quarter with a 54% rise in net profit at Rs.129 crore. The company attributed this performance to its localization efforts, cost savings and efficient project execution.

The company, in Q4 received orders to the tune of Rs.2058 crore, down from Rs.24876 crore in previous Q4. As at 31st Dec 2015, its order backlog stood at Rs.7,946 crore. The company stated that orders from renewables and railways segment more than doubled as compared to 2014 but was offset to a large extent by the silent investment pattern prevalent in the industry. The service business at nearly Rs.1,000 crore for the year, posted a good double digit growth in orders compared to last year as customers’ focus on quality, safety and maintenance increased and decisions on new investments and large orders were delayed. The stock enjoys high investor fancy due to its Swiss parentage; as such MNCs quote at a much higher PE. The company, like the others in the sector was a victim of circumstances but now seems to have found its feet back. Fundamentally, remains solid.