Order Book and Good Results – ABB Hits New High

ABB’s net profit jumped 69% in Q1 March 2007 at Rs 86.63 crore (Rs 51.30 crore). Sales rose 63% to Rs 1312.44 crore (Rs 802.91 crore).

ABB also registered a strong 43% year-on-year growth in order intake at Rs 2000.3 crore during the quarter ended March 2007, which has further strengthened the order-book. Order backlog, as at 31 March 2007, stood at Rs 4259.60 crore compared to Rs 3372.3 crore at the beginning of the current calendar and compared to Rs 2674.30 crore as at end of March 2006.

ABB has been one of the prime beneficiaries of strong investments in both power sector as well as the manufacturing sector.

The current price of Rs 4157.80 discounts its FY 2006 (year ended 31 December 2006) EPS of Rs 80.30, by a PE multiple of 51.7.

At the time of announcing FY 2006 (year ended 31 December 2006) results, ABB announced a 1:5 stock-split, implying a subdivision of a share of Rs 10 into five of Rs 2 each. This is subject to shareholders approval in the ensuing annual general meeting. The ABB stock hit a high of Rs 4160, which is a lifetime high for the counter.