ABB India Rises To Highest Level Since December 2007
The stock rose more than 12 percent on a spike in its orderbook.
ABB India Ltd. rose to its highest level in nearly a decade after posting a significant increase in its orderbook in the January to March quarter.
The company saw orders rise 28 percent to Rs 2,342 crore on a year-on-year basis, driven by government initiatives, according to the company's filing on the exchanges.
The company's order backlog now stands at Rs 12,023 crore as on March 31, compared to Rs 7,800 crore in the same period last year.
An order backlog of Rs 12,023 crore provides solid visibility for future revenue and investments, said the company’s press release. The traction in the transportation sector led by railways also helped retain the order momentum in this quarter, it added.
Additionally, demonetisation has had a positive impact of higher realisation from channel partners and part suppliers, the management said during a conference call post earnings on Tuesday.
The stock rose as much as 12.4 percent to Rs 1,580 on Tuesday.
The infrastructure company also registered a 3.5 percent rise in net profit during the quarter, while its profitability margins contracted by 50 basis points. The capital goods company which saw its revenue grow at 8 percent in the January-March quarter, expects the topline growth to rise only over a period of time, as orders get delivered.
