>ABB Limited(INDIA BULLS)

For Q2’09, ABB Limited (India)’s revenue declined by 7.1% yoy to
Rs. 15.1 bn. EBITDA declined by 32.5% yoy to Rs. 1.4 bn due to an
increase in employee costs and other expenditures. In the
near-to-medium term, we expect the Company to benefit from the
increasing Infrastructure investments, expansion plans in the Power sector,
and a revival of corporate capex cycle, which should give a boost to the
Company’s order book.
Order book to improve: In Q2’09, ABB secured Rs. 21.1 bn worth of new
orders. Most of these orders have been placed by government utilities. At
the end of Q2’09, the Company had an outstanding order book of
Rs. 76.2 bn, which represents 1.1x of FY08 revenue. Going forward, we
expect the Power segment of the Company to get a boost from the
investments in the Power sector by the Government of India (GoI). GoI has
envisaged a capacity addition of more than 78,000 MW in XIth five year
plan, and around 100,000 MW in XIIth five year plan to address the current
power deficit and increasing demand for power in the country. Accordingly,
we expect robust order inflows for the Company in the
near-to-medium term.

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