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Result Review
ABB
ABB announced its 4QCY2010 results, which were below our estimates. The company
reported moderate growth of 9.0% yoy in its top line to `2,072cr (`1,902cr), which was
lower by 6.1% from our expectation of `2,207cr. On the operating front, the company
witnessed a sharp erosion of 723bp yoy to 1.6% as compared to our expectation of 10.7%.
Consequently, EBITDA plummeted by 80.5% yoy to `33cr (`168cr), which was substantially
lower than our expectation of `235cr. Lower-than-expected revenue growth coupled with the
crash in EBITDA margin negatively impacted PAT, leading to a 93.8% yoy fall to around `7cr
(`110cr) in 4QCY2010. At the CMP of `698, the stock is trading at 24.4x and 15.0x its
CY2011E and CY2012E earnings estimates, respectively. We will revisit our estimates and
release a detailed note post the conference call with the management. Currently, we
maintain our Neutral view on the stock.
Mphasis
Mphasis is set to announce its 1QFY2011 results. We expect the company to record revenue
of US $306.9mn with 3.6% qoq growth. In INR terms, revenue growth will stand lower at
2.6% qoq to `1,380.8cr due to INR appreciation against USD. The ITO business is expected
to lead the growth at 10%, whereas growth in the application business is expected to be at
2.3% qoq. EBITDA margin is expected to slip by 20bp qoq to 23.6% on the back of INR
appreciation. PAT is expected to be at `277.6cr. We continue to maintain Buy on the stock
with a Target Price of `866.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result Review
ABB
ABB announced its 4QCY2010 results, which were below our estimates. The company
reported moderate growth of 9.0% yoy in its top line to `2,072cr (`1,902cr), which was
lower by 6.1% from our expectation of `2,207cr. On the operating front, the company
witnessed a sharp erosion of 723bp yoy to 1.6% as compared to our expectation of 10.7%.
Consequently, EBITDA plummeted by 80.5% yoy to `33cr (`168cr), which was substantially
lower than our expectation of `235cr. Lower-than-expected revenue growth coupled with the
crash in EBITDA margin negatively impacted PAT, leading to a 93.8% yoy fall to around `7cr
(`110cr) in 4QCY2010. At the CMP of `698, the stock is trading at 24.4x and 15.0x its
CY2011E and CY2012E earnings estimates, respectively. We will revisit our estimates and
release a detailed note post the conference call with the management. Currently, we
maintain our Neutral view on the stock.
Mphasis
Mphasis is set to announce its 1QFY2011 results. We expect the company to record revenue
of US $306.9mn with 3.6% qoq growth. In INR terms, revenue growth will stand lower at
2.6% qoq to `1,380.8cr due to INR appreciation against USD. The ITO business is expected
to lead the growth at 10%, whereas growth in the application business is expected to be at
2.3% qoq. EBITDA margin is expected to slip by 20bp qoq to 23.6% on the back of INR
appreciation. PAT is expected to be at `277.6cr. We continue to maintain Buy on the stock
with a Target Price of `866.
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