Shares of ABB India Ltd. gained after its first-quarter profit beat analysts' estimates, even as brokerages expect continued strong momentum in order inflows.
The company's first-quarter consolidated net profit declined 34% year-on-year to Rs 244.89 crore, according to an exchange filing, but was ahead of Bloomberg's estimate of Rs 183.9 crore.
Revenue gained 22.5% to Rs 2,411 crore, compared to Bloomberg's estimate of Rs 2,229.95 crore.
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ABB India Q1 CY23 (Consolidated, YoY)
Revenue is up 22.5% at Rs 2,411 crore (Bloomberg estimate: Rs 2,229.95 crore).
Ebitda is up 52% at Rs 285.31 crore (Bloomberg estimate: Rs 215.3 crore).
Ebitda margin: 11.8% versus 9.5% (Bloomberg estimate: 9.65%).
Net profit fell 34% to Rs 244.89 crore (Bloomberg estimate: Rs 183.9 crore).
Shares of the company rose 5.55% to close at Rs 3,645.35, compared to a 0.92% gain in the benchmark Nifty 50.
Of the 27 analysts tracking the stock, nine maintain a 'buy,' nine suggest a 'hold,' and two recommend a 'sell,' according to Cogencis data. Among the remaining analysts, four were 'neutral' between 'buy' and 'hold' and three were neutral between 'hold' and 'sell'.
What Nomura Says:
Maintains 'neutral' with a target price of Rs 3,274 per share.
Says continued strong momentum in order inflows is the key upside risk.
Ebitda margin underperformance can be a key downside risk.
Results beat the consensus estimate, led by significantly higher than estimated profitability in the electrification segment.
Ebitda margin came in significantly above estimates, largely led by the beat in the electrification segment.
Order inflow growth was strong at about 36.4% year-on-year and beat the estimate.
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