ABB Power Q2 Review - Execution Miss Led By Covid-19 Restrictions: Dolat Capital
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Dolat Capital Report
ABB Power Products and Services India Ltd. reported top-line growth of 24% y-o-y, which was 16% below our estimates.
Impact of Covid-19 restrictions on the company’s revenue was ~Rs 2 billion as more than 20 project sites were partially/ fully closed along with supply chain/ logistics disruptions and customer delays.
Subsequently, Ebitda margin miss was ~200 basis points due to lower operating leverage.
Nevertheless, the company witnessed a strong recovery in order inflows (up 31% y-o-y) as services orders increased by 62% y-o-y.
ABB Power Products has order backlog of Rs 48 billion, translating into book/bill of 1.4 times.
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