ABB hits a new high

ABB is the top gainer on the BSE currently. The stock which had closed yesterday at Rs.1401.75, went on to hit a new high today at Rs.1578. It presently remains firmly in the green, up over 11.5% at Rs.1565.

The market is very happy with the performance of ABB – actually the numbers are not exactly trailblazing but the joy is more over its order intake and the fact that it has shown an improvement, howsoever small it might me.

The company posted a 3% (YoY) rise in net profit at Rs.88 crore  on a 9% increase in total income at Rs.2319 crore. EBITDA was flat at Rs.171 crore, down by less than 1% and margins slipped from 8.6% to 7.9%. As one can see, the performance was nothing to celebrate really with a new high.

But apparently the market is celebrating its 28% rise in order intake at Rs.2342 crore and its order backlog at end of FY17 stood at Rs.12,023 crore.

The company has also given a very positive outlook for the future and is excited about its digital portfolio. In the issued Press Release, ABB has said, “These are exciting times to be in business with the energy and fourth industrial revolution transforming our grids, homes and shop-floors with government initiatives of smart power for all and make in India. From electric vehicles to clean energy, smart factories – we are witnessing digital green-shoots across sectors and are totally focused and energized to drive the transformation with our customers and the recently launched ABB AbilityTM digital portfolio.” It is this optimism which has led the stock price to the new high.