20 July 2017
2QCY17 Results Update | Sector: Capital Goods
ABB
Sell
BSE SENSEX
31,904
S&P CNX
9,873
CMP: INR1,459
TP: INR1,180 (-20%)
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Performance hurt by ECL provisioning; valuation premium warrants Sell
Operational performance below expectations:
2QCY17 revenue rose 6% YoY
to INR22.3b, missing our estimate of INR23.8b by 7%. EBIDTA margin of 6.6%
(+120bp YoY) too was below our estimate of 9.7%. EBITDA rose 30% YoY to
INR1.5b, but came in below our estimate of INR2.2b due to ECL provisioning
done under Ind-AS accounting system and expenses incurred on developing
new products. PAT of INR0.8b too missed our estimate of INR1.1b.
Gross margin improves 160bp YoY to 36% – near-all time high:
Gross margin
improved 160bp YoY to 35.9%, driven by initiatives undertaken over the past 3-
4 years toward increased localization, rationalization of supply chain, improving
efficiency, better project management capabilities and lower raw material
prices. EBITDA margin improved 120bp YoY to 6.6%.
2Q order inflow up 13% YoY; order backlog increases 56% YoY:
Order inflow
increased 13% YoY to INR23.0b in 2QCY17, driven by finalization of base
orders. Large-ticket orders did not materialize during the quarter, given the
cautious approach adopted by clients in the run-up to GST implementation.
Key sectors driving base orders were utilities, transmission and infrastructure,
while industrial companies continued to incur operational capex. Order backlog
stands at INR121b (+56% YoY), providing revenue visibility of 1.4x its CY16
revenue.
Valuation view:
Management is optimistic on the demand scenario, driven by
government capex. It continues to remain focused on margin expansion via its
efforts toward operational efficiency and localization. We cut our estimates for
CY17/18 by 11/2% to factor in margin compression on account of ECL
provisioning, and maintain our
Sell rating
given premium valuations. We
maintain our price target of INR1,180 (35x Mar’19 EPS of INR33).
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg. Val, INRm
Free float (%)
ABB IN
211.9
313.4 / 4.9
1619 / 950
-5/11/-2
126
25.0
Financials & Valuations (INR b)
Y/E Dec
2016 2017E 2018E
Net Sales
86.6
97.5 113.1
EBITDA
7.9
10.0
12.6
Adj. PAT
3.7
5.2
6.9
Adj. EPS (INR)
19.7
24.4
32.5
EPS Gr (%)
25.0
23.7
33.2
BV/Sh (INR)
154.9 179.3 203.3
RoE (%)
12.7
13.6
16.0
RoCE (%)
18.3
20.9
24.0
P/E (x)
75.8
61.2
46.0
P/BV (x)
9.6
8.3
7.3
Estimate change
TP change
Rating change
Quarterly Performance
Y/E December
Sales
Change (%)
EBITDA
Change (%)
As % of Sales
Depreciation
Interest
Other Income
PBT
Tax
Effective Tax Rate (%)
Repoted PAT
Adj. PAT
Change (%)
1Q
20,035
10.4
1,808
25.9
9.0
359
223
149
1,376
442
32.1
854
934
72.0
(INR Million)
CY16
2Q
3Q
20,947 20,550
8.4
4.4
1,136
1,516
-29.5
-2.7
5.4
7.4
357
406
197
178
299
299
881
1,231
324
427
36.8
34.7
556
811
556
871
-18.7
48.2
4Q
24,915
2.7
2,819
7.1
11.3
389
285
95
2,241
773
34.5
1,468
1,468
13.4
1Q
21,689
8.3
1,715
-5.2
7.9
376
212
186
1,312
428
32.6
884
884
-5.3
CY17
2Q
3Q
22,237 23,383
6.2
13.8
1,473
1,533
29.7
1.1
6.6
6.6
383
393
231
327
326
100
1,185
913
435
309
36.7
33.9
751
603
751
603
34.9
-30.7
CY16
4Q
30,173
21.1
5,230
85.5
17.3
420
399
-233
4,177
1,249
29.9
2,928
2,928
99.4
85,318
6.4
7,901
5.8
9.3
1510
919
658
6,131
1,957
31.9
3,687
4,175
25.0
CY17E
96,113
12.7
9,951
25.9
10.4
1573
1,169
378
7,587
2,421
31.9
5,166
5,166
23.7
MOSL
1Q
23,833
13.4
2,236
31.5
9.4
393
285
40
1,598
542
33.9
1,056
1,056
36.4
Var.
(%)
-6.7%
-34.1%
-25.8%
-28.9%
-28.9%
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Ankur Sharma
(Ankur.VSharma@MotilalOswal.com); +91 22 6129 1556
Amit Shah
(Amit.Shah@MotilalOswal.com); +91 22 6129 1543

ABB
Operating performance below expectations
2QCY17 revenue of INR21.9b (+6% YoY) was 7% below our estimate of INR23.8b.
Revenue growth was supported by an increase in exports (+15% YoY) and
services (+20% YoY), while EBIDTA margin of 6.6% (+120bp YoY) was lower than
our estimate of 9.7%. The miss on revenue was led by weak execution in Robotic
and Motion (-0.1% YoY) and Process/Industrial Automation (-0.8% YoY). EBITDA
of INR1.5b (+30% YoY) was below our estimate of INR2.2b, led by ECL
provisioning done under Ind-AS accounting system and expenses incurred on
developing new products. PAT of INR0.8b too was below our estimate of
INR1.1b.
Gross margin at 35.9% improved 160bp YoY, driven by initiatives undertaken
over the past 3-4 years toward increased localization, rationalization of supply
chain, improving efficiency, better project management capabilities and lower
raw material prices. EBITDA margin improved 120bp YoY to 6.6%, but was below
our expectation of 9.4%, impacted by higher provisioning on account of
expected credit loss (ECL) under the Ind-AS accounting system.
Order inflow in 2QCY17 stood at INR23.0b (+13% YoY), driven by finalization of
base orders. Large-ticket orders did not materialize during the quarter, given
the cautious approach adopted by clients on account of GST implementation.
Key sectors driving base orders were utilities, transmission and infrastructure
segment, while industrial companies continue to do operational capex.
Order backlog stands at INR121b (+56% YoY), providing revenue visibility of 1.4x
its CY16 revenue.
Networking capital cycle improved by 34 days to 38days v/s 72days in 2QCY16.
Improvement in working capital cycle was driven by a reduction in debtor days
(117 days v/s 136 days in 2QCY16).
Exhibit 2: EBITDA margin improves 120bp on YoY basis
EBITDA (%)
Exhibit 1: RM cost declines 160bp on YoY basis
Material cost (% of sales)
Source: Company, MOSL
Source: Company, MOSL
Segmental analysis: Exports and Service drive revenue growth
Robotics and Motion reported a revenue decline of 0.1% YoY to INR4.6b,
impacted by sluggish execution in the heavy industries. EBIT margin improved to
6.7% (+420bp YoY).
Industrial automation sales came in at INR3.5b (-1.0% YoY) and margin at 8.9%
(+80bp YoY). Subdued revenues are reflective of weak industrial capex in the
country.
20 July 2017
2

ABB
Power Grids division revenue declined by 0.3% YoY to INR9.6b, and EBIT margin
improved by 260bp YoY to 7.2%.
Electrification Products sales rose 20% YoY to INR6.4b. EBIT margin contracted
80bp YoY to 10%.
Exhibit 3: Segmental analysis (INR m)
Discrete Automation
Revenue
Growth YoY (%)
EBIT
EBIT Margin (%)
Electrification Products
Revenue
Growth YoY (%)
EBIT
EBIT Margin (%)
Process Automation
Revenue
Growth YoY (%)
EBIT
EBIT Margin (%)
Power Grid
Revenue
Growth YoY (%)
EBIT
EBIT Margin (%)
2QCY15
4,788
21.1
388
8.1
3,892
101.5
412
10.6
3,317
9.9
338
10.2
8,618
-20.9
357
4.1
3QCY15
5,064
2.9
443
8.8
2,110
22.2
227
10.8
2,765
-10.5
252
9.1
10,962
6.0
853
7.8
4QCY15
6,125
6.4
476
7.8
4,753
150.1
553
11.6
4,205
21.8
561
13.3
10,149
-22.3
1,098
10.8
1QCY16
4,505
-3.1
461
10.2
6,675
80.7
942
14.1
2,975
2.3
179
6.0
7,676
-2.0
491
6.4
2QCY16
5,293
10.5
306
5.8
4,165
7.0
580
13.9
3,209
-3.3
295
9.2
9,242
7.2
622
6.7
3QCY16
5,243
3.5
406
7.7
3,934
-5.6
475
12.1
3,582
22.0
348
9.7
8,542
-2.2
257
3.0
4QFY16
6,695
9.3
956
14.3
5,122
7.8
719
14.0
3,835
-8.8
650
17.0
10,206
0.6
524
5.1
1QFY17
4,993
10.8
381
7.6
6,910
3.5
782
11.3
3,075
3.4
110
3.6
8,665
12.9
526
6.1
2QFY17
4,588
-0.1
307
6.7
6,446
20.0
646
10.0
3,535
-0.8
316
8.9
9,601
-0.3
696
7.2
Source: Company, MOSL, Note Q116 onwards, the segments have been reclassified
Order inflow improves 13% YoY supported by finalization of base orders;
large-ticket order finalizations fail to materialize
Order inflow in 2QCY17 stood at INR23.0b (+13% YoY), driven by finalization of
base orders. Large-ticket orders did not materialize during the quarter, given
cautious approach adopted by clients on account of GST implementation. Key
sectors driving base orders were utilities, transmission and infrastructure, while
industrial companies continue to do operational capex.
Order backlog stands at INR121b (+56% YoY), providing revenue visibility of 1.4x
its CY16 revenue.
Exhibit 4: Order inflow improvement supported by base
order finalization
Order intake (INR b)
Growth (YoY,%)
173
Exhibit 5: B-T-B ~1.4x provides decent revenue visibility
Order book (INR b)
BTB (x, TTM)
14
-33-29
-6 -15
5 6
29 17
49
-19
-6 -6
61
8
-17 -1
29
28 13
Source: Company, MOSL
Source: Company, MOSL
20 July 2017
3

ABB
Valuation and view
Over the last 2-3 years, ABB’s raw material costs have declined from ~75% to
the current ~64%, led by its various initiatives. However, the savings are yet to
fully reflect in the reported EBIDTA margin due to poor operating cost
absorption: staff costs have increased from ~7-7.5% to the present 8%, while
SG&A expenses have increased from ~13% to 17% in this period.
Localization of manufacturing is a priority, and the ongoing/recently
commissioned capacity expansions include i) doubling of MCB capacity – will
largely cater to the export market, ii) capacity for GIS Transformers and
Distribution Transformers and iii) HT Motors. In Process Automation, ABB is
making efforts to build a service portfolio, which over a period of time, will
provide stability to margins.
Management has always maintained that ‘In Country, for Country, by Country’
remains an important strategy, and its focus is on developing products that are
suitable for the Indian market.
Management is optimistic on the demand scenario, and remains focused on
margin expansion via its efforts toward operational efficiency and localization.
While segments such as Transmission, Renewable and Transportation are
witnessing traction, an improvement in the traditional sectors of Steel, Cement
and Oil & Gas remains elusive.
We cut our estimates for CY17/18 by 11/2% to factor in margin compression on
account of ECL provisioning, and maintain our
Sell rating,
given premium
valuations. We maintain price target of INR1,180 (35x Mar’19 EPS of INR33).
Exhibit 6: Revision in estimates
Description
Sales
EBITDA
Margin(%)
PAT
EPS
New Estimates
2016
2017E
2018E
85,318
93,568
111,157
7,901
9.3%
4,175
19.7
8,989
9.6%
4,749
22.4
11,968
10.8%
6,698
31.6
Old Estimates
2017
2018E
100,769
111,905
10,164
10.1%
5,311
25.1
12,490
11.2%
6,815
32.2
Change in Estimates
2017
2018E
-7%
-1%
-12%
-0.5%
-11%
-11%
-4%
-0.4%
-2%
-2%
Source: Company, MOSL
20 July 2017
4

ABB
Key Concall Highlights
Overall business environment
Three areas of focus – Utilities, Industry, Transport & Infra.
Focus on operational excellence helping improving margins, cash flows.
GST impact
First month of implementation – team has been successful in their ABB value
chain; will be a net positive change for ABB.
GST impacted the entire value chain – sourcing, customers and logistics.
Customers were cautious to pick up; however in July, customers have started
picking up material not done in June.
GST delayed industrial orders more than power transmission orders.
Ordering decisions delayed as customers evaluating the impact of GST – ABB is
looking at alternatives to offset this.
Could take 1-3 months to settle down in the market; within 3-6 months, the
situation will be very different.
Trying to manage with customers; need to watch the pace of the industry over
next 3-6 months.
Margins
Gross margin holding at 36%; employee costs higher due to bonus and hikes.
Other expenses for new product introduction, ECL impact and receivable
discounting.
DSO now down below 120 days.
MTM derivatives impacted operational EBITDA.
Orders
Base orders (+13% YoY) have continued, while GST-related uncertainty has led
to deferral of large orders by government and private investments. Focus from
ABB remains on base orders; 2QFY17 is all base orders.
Industry orders for technology and digital upgrades (operational efficiencies),
including robotic automation.
Strategically leveraging the extensive installed base; sustained strong growth in
service orders.
Export orders continued the uptrend in the year with a focus on power
networks and industrial efficiency.
Fresh orders from utility, transportation and infra, while opex is from industrial
orders.
Utilities
Continue to see growth in investments in renewables, but tariffs are very
competitive in solar and wind; stress on costs/value chain; 28% growth in
renewables for ABB.
61% of capex from states, apart from green energy corridors/ISTS corridors.
Need high technology for renewable connectivity to grid, and ABB can help
here.
Consolidation happening in food, water, irrigation, cement; efficiency
improvement in Rail, Metros, Electric Vehicles coming up.
Healthy growth in products and projects; in projects, will take up only those
which have good commercial terms.
20 July 2017
5

ABB
Power Grids
HVDC line – ABB almost done with NE Agra project with 6GW corridor.
New HVDC lines are being planned.
Micro Grids – will be a strong driver; ABB has created products for India –
running pilot projects, and tipping point will come with a sharp fall in battery
prices.
EV – government wants all cars to be electric by 2030; in next 2-5 years, there
could be a tipping point being reached on this; ABB engaging with OEMs for
developing an ecosystem.
ABB supplies chargers, software – the entire ecosystem has to be developed,
and ABB will create this along with OEMs.
Robotics and Motion/Industrial automation
Heavy industries not doing well; Plastic, aircon, food and beverages doing well,
and ABB has aligned itself with this very well.
Rail is at 5-7% of sales for them.
Industrial capex is muted in core sectors – this has resulted in low growth; 2Q
was good for industrial automation and they grew in double-digits.
Exports
Strong manufacturing base for products, localization and technology know-how
used for global customers.
Engineering exports services are through service center - this is done through
100% owned GISTL.
Export and services are the fastest growing segments – exports at 15-16% and
services at 20%.
Export now stands at 18% and services at 12-13% of total revenue; domestic is
subdued, so exports’ share is higher.
20 July 2017
6

ABB
Exhibit 7: Operating Matrix
Year ended December
Revenues (INR m)
LV Products
Discrete Automation & Motion
Process automation
Power products
Power systems
Power Grid
Gross Segmental Sales
Revenue Growth (% YoY)
LV Products
Discrete Automation & Motion
Process automation
Power products
Power systems
Power Grid
Revenue Growth
EBIT Margins (%)
LV Products
Discrete Automation & Motion
Process automation
Power products
Power systems
Power Grid
Costs, % of Revenues
Material Costs
Contribution Margins, %
Staff Costs
Other Expenses
EBIDTA %
Products (% of Revenues)
Fixed Assets Turn (x)
NWC (Days)
EPS (INR/sh)
% YoY
PER (x)
2012
6,174
17,753
13,566
20,853
22,422
0
80,767
14.4%
-1.3%
2.6%
4.2%
-5.1%
0.7%
6.4%
11.0%
-1.1%
6.6%
2.9%
2013
6,769
18,237
12,480
21,304
23,851
0
82,640
9.6%
2.7%
-8.0%
2.2%
6.4%
2.3%
3.7%
6.9%
5.7%
8.0%
3.9%
2014
7,373
18,986
12,450
23,255
21,554
0
83,617
8.9%
4.1%
-0.2%
9.2%
-9.6%
1.2%
5.4%
6.8%
8.0%
7.9%
5.3%
2015
16,509
20,624
13,366
25,992
18,707
0
85,832
123.9%
8.6%
7.4%
11.8%
-13.2%
2.6%
11.6%
8.2%
11.2%
9.1%
6.5%
2016
23,895
19,245
14,923
0
0
37,176
95,238
44.7%
-6.7%
11.7%
2017E
27,479
20,742
15,518
0
0
40,676
104,414
15.0%
7.8%
4.0%
2018E
32,975
24,578
16,795
0
0
49,577
123,925
20.0%
18.5%
8.2%
2019E
39,570
26,724
18,947
0
0
53,106
138,348
20.0%
8.7%
12.8%
11.0%
11.9%
8.9%
10.5%
9.4%
9.6%
12.0%
9.0%
9.0%
21.9%
18.7%
12.0%
10.0%
10.5%
7.1%
11.6%
12.0%
10.0%
10.5%
4.4%
71.7%
28.3%
8.2%
13.7%
6.3%
55.4%
5.5
71.2
12.4
65.6%
120.0
69.9%
30.1%
8.8%
14.9%
6.4%
56.0%
5.5
71.8
9.5
-23.6%
157.0
67.8%
32.2%
9.1%
15.3%
7.7%
59.3%
6.2
71.7
12.8
35.0%
116.3
65.1%
34.9%
9.2%
16.4%
9.3%
66.3%
6.9
74.1
15.8
22.8%
94.8
64.8%
35.2%
8.7%
17.2%
9.3%
74.3%
7.9
54.6
19.7
25.0%
75.8
5.9%
64.6%
35.4%
8.6%
17.2%
9.6%
75.7%
9.4
82.3
22.4
13.8%
66.6
7.4%
65.6%
34.4%
7.9%
15.7%
10.8%
77.4%
10.7
82.3
31.6
41.0%
47.2
8.5%
65.5%
34.5%
7.7%
15.4%
11.4%
77.8%
12.4
82.3
38.2
20.9%
39.1
20 July 2017
7

ABB
Financials and Valuations
Income Statement
Y/E December
Net Sales
Change (%)
Raw Materials
Staff Cost
Other Mfg. Expenses
Selling Expenses
Admin. & Other Exp.
EBITDA
% of Net Sales
Depreciation
Interest
Other Income
Extra-ordinary Items (net)
PBT
Tax
Rate (%)
PAT
Adjusted PAT
Change (%)
2013
77,218
2.1
53,985
6,771
4,363
1,044
6,110
4,945
6.4
1,033
1,011
70
-223
3,194
956
29.9
2,238
2,015
-23.6
2014
77,333
0.1
52,429
7,052
4,489
1,133
6,239
5,991
7.7
1,128
1,050
173
-435
3,552
1,267
35.7
2,285
2,719
35.0
2015
81,403
5.3
53,000
7,499
4,904
1,239
7,296
7,465
9.2
1,598
912
130
-340
4,746
1,747
36.8
2,999
3,339
22.8
2016
86,646
6.4
56,173
7,503
5,015
1,299
8,755
7,901
9.1
1,510
919
658
-487
5,644
1,957
34.7
3,687
4,175
25.0
2017E
94,936
9.6
61,301
8,172
5,388
1,424
9,662
8,989
9.5
1,573
1,169
728
0
6,975
2,226
31.9
4,749
4,749
13.8
2018E
112,568
18.6
73,846
8,889
6,269
1,692
9,904
11,968
10.6
1,670
1,189
728
0
9,837
3,139
31.9
6,698
6,698
41.0
(INR Million)
2019E
125,602
11.6
82,330
9,658
6,934
1,890
10,643
14,147
11.3
1,773
1,209
728
0
11,893
3,795
31.9
8,098
8,098
20.9
Balance Sheet
Y/E December
Share Capital
Reserves
Net Worth
Loans
Net Deffered Tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Other current Assets
Current Liab. & Prov.
Creditors
Other Liabilities
Provisions
Net Current Assets
Application of Funds
2013
424
26,352
26,776
6,243
-272
32,746
18,627
4,712
13,915
475
173
55,661
9,889
32,357
3,166
6,077
4,172
37,477
20,826
13,960
2,692
18,184
32,747
2014
424
27,696
28,120
3,756
-152
31,723
19,718
5,723
13,995
319
165
53,585
8,938
31,575
2,260
6,790
4,022
36,341
19,840
12,977
3,524
17,244
31,723
2015
424
29,662
30,086
6,043
-478
35,651
20,267
7,227
13,040
443
164
60,007
9,396
33,909
5,736
7,002
3,964
38,003
21,020
12,720
4,263
22,004
35,651
2016
424
32,404
32,828
6,000
-784
38,045
21,142
8,592
12,549
678
163
63,116
9,403
30,633
11,892
7,114
4,074
38,461
21,573
12,411
4,476
24,655
38,045
2017E
424
37,153
37,577
6,000
-784
42,794
22,448
10,165
12,283
678
171
65,039
10,312
33,595
8,570
7,691
4,871
35,376
23,072
7,691
4,614
29,662
42,794
2018E
424
42,100
42,524
6,000
-784
47,741
23,835
11,835
12,000
678
194
76,895
12,250
39,911
9,812
9,136
5,786
42,026
27,408
9,136
5,482
34,869
47,741
(INR Million)
2019E
424
48,081
48,505
6,000
-784
53,721
25,308
13,609
11,700
678
207
88,074
13,682
44,574
13,152
10,204
6,462
46,937
30,611
10,204
6,122
41,137
53,721
20 July 2017
8

ABB
Financials and Valuations
Ratios
Y/E December
Basic (INR)
EPS
Growth
Cash EPS
Book Value
DPS
Payout (incl. Div.Tax)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors. (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
Cash Flow Statement
Y/E December
PBT before EO Items
Add : Depreciation
Interest
Less : Direct taxes paid
(Inc)/Dec in WC
CF from operations
(Inc)/Dec in FA
Free Cah Flow
(Pur)/Sale of Investments
CF from investments
(Inc)/Dec in Net Worth
(Inc)/Dec in Debt
Less : Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2013E
9.5
-23.6
14.4
126.4
3.0
31.8
157.0
103.8
27.1
4.1
11.8
0.2
7.5
12.7
9.5
153
47
98
2.4
0.2
2014
12.8
35.0
18.2
132.7
3.7
28.8
116.3
82.2
36.6
4.1
11.3
0.2
9.7
15.4
11.4
149
42
94
2.4
0.1
2015
15.8
22.8
23.3
142.0
3.7
23.5
94.8
64.1
42.6
3.9
10.5
0.2
11.1
17.5
13.1
152
42
94
2.3
0.2
2016
19.7
25.0
26.8
154.9
3.9
19.9
75.8
55.7
32.9
3.6
9.6
0.3
12.7
18.3
15.6
129
40
91
2.3
0.2
2017E
22.4
13.8
29.8
177.3
5.0
22.5
66.6
50.0
25.4
3.3
8.4
0.3
12.6
19.2
16.8
129
40
89
2.2
0.2
2018E
31.6
41.0
39.5
200.7
7.1
22.5
47.2
37.8
19.3
2.8
7.4
0.5
15.8
23.4
19.5
129
40
89
2.4
0.1
2019E
38.2
20.9
46.6
228.9
8.6
22.5
39.1
32.0
14.5
2.5
6.5
0.6
16.7
25.0
21.5
130
40
89
2.3
0.1
(INR Million)
2019E
11,893
2,143
64
3,795
-2,928
6,943
-1,473
5,470
-13
-1,844
0
-190
64
2,117
-6,280
3,340
9,812
13,152
2013
2,971
1,033
1,011
956
-444
2,604
-2,180
425
352
-1,815
-253
2,924
1,011
744
789
2,399
767
3,165
2014
3,986
1,128
1,050
1,267
34
3,881
-1,053
2,828
8
-1,134
-30
-2,490
1,050
911
-4,157
-906
3,165
2,260
2015
5,086
1,353
900
1,747
-1,284
3,653
-766
2,887
1
-2,039
-122
-1,855
900
911
-4,537
3,477
2,260
5,736
2016
6,131
1,712
200
1,957
3,505
9,190
-1,254
7,936
1
-1,989
19
-371
200
964
-2,929
6,155
5,736
11,892
2017E
6,975
1,859
100
2,226
-8,329
-2,007
-1,307
-3,314
-8
-1,939
1,242
-297
100
1,242
-3,714
-3,321
11,892
8,570
2018E
9,837
2,003
80
3,139
-3,965
4,403
-1,387
3,016
-24
-1,891
0
-237
80
1,751
-4,840
1,241
8,570
9,812
20 July 2017
9

ABB
Corporate profile
Company description
Exhibit 1: Sensex rebased
ABB is a worldwide leader in power transmission
and distribution and process automation space. ABB
India is 75% subsidiary of ABB with focus on power
T&D and automation space. Besides power
transmission and distribution, automation products
and process automation are the larger areas of
operations. Power T&D includes products and
project services like switchgears, transformers,
motors, generators, balance of plant activities etc.
Exports contribute ~15% to the total revenues, and
share of service sector stands at ~12%.
Exhibit 2: Shareholding pattern (%)
Jun-17
Promoter
DII
FII
Others
75.0
13.3
3.7
8.1
Mar-17
75.0
12.5
4.4
8.1
Jun-16
75.0
12.4
4.4
8.2
Source: Capitaline
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
LIC of India Profit Plus Balance Fund
Reliance Capital Trustee Company Limited
A/c
HDFC Trustee Company Ltd - HDFC Top 200
Aberdeen Global Indian Equity Limited
% Holding
8.5
1.5
1.5
1.3
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Frank Duggan
Sanjeev Sharma
B Gururaj
Designation
Chairman
Managing Director
Company Secretary
Exhibit 5: Directors
Name
D E Udwadia
Renu Sud Karnad
Name
Nasser Munjee
Tarak Mehta
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Ashwin Solanki & Associates
HBP & Co
S R Batliboi & Associates LLP
Type
Cost Auditor
Secretarial Audit
Statutory
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
CY17
CY18
CY19
MOSL
forecast
22.4
31.6
38.2
Consensus
forecast
23.9
29.5
36.0
Variation (%)
-6.4
7.1
6.0
Source: Bloomberg
Source: Capitaline
20 July 2017
10

ABB
NOTES
20 July 2017
11

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12