Dalal Street

ABB’s net profit jumped 69% in Q1 March 2007 at Rs 86.63 crore (Rs 51.30 crore). Sales rose 63% to Rs 1312.44 crore (Rs 802.91 crore).

ABB also registered a strong 43% year-on-year growth in order intake at Rs 2000.3 crore during the quarter ended March 2007, which has further strengthened the order-book. Order backlog, as at 31 March 2007, stood at Rs 4259.60 crore compared to Rs 3372.3 crore at the beginning of the current calendar and compared to Rs 2674.30 crore as at end of March 2006.

ABB has been one of the prime beneficiaries of strong investments in both power sector as well as the manufacturing sector.

The current price of Rs 4157.80 discounts its FY 2006 (year ended 31 December 2006) EPS of Rs 80.30, by a PE multiple of 51.7.

At the time of announcing FY 2006 (year ended 31 December 2006) results, ABB announced a 1:5 stock-split, implying a subdivision of a share of Rs 10 into five of Rs 2 each. This is subject to shareholders approval in the ensuing annual general meeting. The ABB stock hit a high of Rs 4160, which is a lifetime high for the counter.

Cipla reported 34% fall in net profit in Q4 March 2007 at Rs 126 crore from Rs 191 crore mainly due to a sharp decline in active pharmaceutical ingredients (APIs) exports and rising material costs. The company’s performance in the same quarter last year was exceptionally good because of strong sales in Western markets.

Net sales for the quarter were up 6.3% to Rs 938.5 crore, on the back of a 14.4% growth in domestic revenues to Rs 399.7 crore. Exports were flat at Rs 529.3 crore in the quarter ended 31 March 2007, from Rs 526.6 crore in the last year’s corresponding quarter. A change in product mix also contributed to the decrease in profitability.

Cipla today reported a 8% increase in net profit at Rs 660.82 crore for the year ended 31 March 2007, as compared to Rs 607.64 crore in FY 2006. Net sales were up at Rs 3572.1 crore compared to Rs 2985.9 crore in the year ended 31 March 2006.

Cipla expects its exports business to show modest growth in the next two quarters, on account of ever-rising pricing pressure in the US.

Mahindra Gesco Developers reported a net loss of Rs 1.52 crore for the fourth quarter ended March 2007 compared to a net profit of Rs 3.86 crore in the fourth quarter ended March 2006. Its net sales slipped to Rs 34 crore from Rs 42.4 crore in the previous year.

The stock had a pre-results’ rally. From Rs 594.30 on 19 April 2007, it shot up to Rs 675.50 by 25 April 2007, anticipating a strong set of results from the company. It is now quoting at Rs 615.

Mahindra Gesco is one of the larger players in the organised sector for property development and consulting. It plans to expand activities to all major cities in the country. Does this indicate a consolidation in Indian Real Estate ?