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					                                                                                          1QCY2012 Result Update | Capital Goods
                                                                                                                              May 10, 2012



 ABB India                                                                                    SELL
                                                                                              CMP                                      `747
 Performance Highlights                                                                       Target Price                             `498
 (` cr)                    1QCY12       1QCY11      % chg (yoy)   4QCY11    % chg (qoq)       Investment Period                12 Months
 Revenue                      1,790      1,793            (0.2)     2,200        (18.6)
 EBITDA                            97      102            (4.0)       108         (9.7)      Stock Info
 EBITDA margin (%)              5.4         5.7         (22)bp        4.9         54bp       Sector                          Capital Goods
 Reported PAT                      48        60          (20.0)        64        (25.7)      Market Cap (` cr)                         15,827
 Source: Company, Angel Research                                                             Beta                                         0.7
                                                                                             52 Week High / Low                       915/541
 ABB India (ABB) reported a mixed set of numbers for 1QCY2012. The company
                                                                                             Avg. Daily Volume                    368,360
 reported lower-than-expected top-line as well as bottom–line performance;
                                                                                             Face Value (`)                                2
 however, when adjusted for MTM forex loss, the bottom line exceeded
                                                                                             BSE Sensex                                16,479
 expectations. Order intake during the quarter was down 3.7% at `1,632cr, taking
 the total order book to `9,028cr. We expect order inflow to improve over the                Nifty                                      4,965

 coming quarters, which will lead to improved growth trajectory. In addition,                Reuters Code                             ABB.BO
 margin recovery in the long term seems likely, given the pricing in the T&D                 Bloomberg Code                           ABB@IN
 segment has bottomed out. However, overly expensive valuations do not warrant
 a change in our view. Hence, we continue to maintain our Sell view on the stock.
                                                                                             Shareholding Pattern (%)
 Revenue flat, margin improves when adjusted for forex loss: For 1QCY2012, the               Promoters                                  75.0
 company’s top line was flat at `1,790cr (`1,793cr), which was 12.8% lower than              MF / Banks / Indian Fls                    13.4
 our (as well as consensus) estimate of `2,053cr. EBITDA margin declined by 22bp             FII / NRIs / OCBs                           3.2
 yoy to 5.4%, lower than our estimate of 5.9%; however, when adjusted for forex              Indian Public / Others                      8.4
 loss, EBITDA margin came in higher at 7.3%. Reported PAT came in at `47.6cr,
 declining by 20% yoy. Margin improvement was primarily on the back of
 reduction in cost of materials, which was on account of certain cost-saving                 Abs. (%)                   3m     1yr        3yr
 measures, which the company started taking five quarters back.                              Sensex                    (7.6) (11.0)     38.8
                                                                                             ABB                      (14.0) (15.9)     60.5
 Outlook and valuation: With decent order inflows expected in the power products
 and power system segments along with recovering profitability, exit from rural
 electrification projects and debt-free balance sheet, we expect ABB’s fundamental
 to steadily improve going forward. However, with ABB trading at 41x and 36x PE
 on CY2012 and CY2013 EPS estimates, we believe the stock remains overvalued.
 We maintain our Sell view on the stock with a target price of `498.

 Key financials
  Y/E December (` cr)                    CY2010       CY2011      CY2012E    CY2013E
  Net sales                                6,287         7,370      8,760      10,023
  % chg                                       0.8         17.2       18.9         14.4
  Net profit                                  63           185        386          440
  % chg                                    (82.2)        191.8      109.3         13.8
  EBITDA (%)                                  1.3          3.8        7.6          7.5
  EPS (`)                                     3.0          8.7       18.2         20.7
  P/E (x)                                  250.3          85.8       41.0         36.0
  P/BV (x)                                    6.5          6.2        5.5          4.9
  RoE (%)                                     2.6          7.5       14.4         14.6
  RoCE (%)                                    1.3          8.3       21.0         21.1
                                                                                             Rahul Kaul
  EV/Sales (x)                                2.4          2.1        1.8          1.5
                                                                                             +91 22 3937 7600 Ext: 6817
  EV/EBITDA (x)                            181.8          54.8       23.4         20.7
                                                                                             rahul.kaul@angelbroking.com
 Source: Company, Angel Research
Please refer to important disclosures at the end of this report                                                                             1
                                                                                       ABB India | 1QCY2012 Result Update



Exhibit 1: Quarterly performance
                                  1QCY12    1QCY11       % chg (yoy)   4QCY11       % chg (qoq)   CY2011     CY2010       % chg (qoq)
Net Sales                          1,773     1,781             (0.5)     2,170           (18.3)    7,370      6,287             17.2
Other operating income                17         12                         30                        79            72
Total income                       1,790     1,793             (0.2)     2,200           (18.6)    7,449      6,359             17.1
Stock adjustments                     (8)      (17)                         20                       (85)       (10)
Raw Material                        1216      1294             (6.0)      1515           (19.7)    5,563      4,812             15.6
(% of total income)                 71.2      75.6                        74.3                      73.5        75.5
Employee Cost                        149       125             18.9        155            (3.7)      587        490             19.7
(% of total income)                  8.3        7.0                         7.0                      7.9            7.7
Other Expenses                       267       213             25.2        302           (11.7)     1022        911             12.1
(% of total income)                 14.9      11.9                        13.7                      18.4        18.9
Total Expenditure                  1,693     1,691              0.1      2,092           (19.1)    7,087      6,203             14.2
EBITDA                                98       102             (4.0)       108            (9.7)      362        156            131.9
(EBITDA %)                           5.4        5.7                         4.9                      4.9            2.5
Interest                               5            4          35.1         13           (58.2)       31            17          76.4
Depreciation                          22         14            55.0         12            79.5        80            52          54.0
Other Income                           2            5                           1                     16            13
PBT                                   72         88           (18.4)        84           (14.7)      268        100            167.1
PBT (%)                              5.5        4.9                         3.8                      3.6            1.6
Total Tax                             24         28           (14.9)        20            20.6        83            37         124.9
(% of PBT)                          33.5      32.1                        23.7                      31.1        36.9
Reported PAT                          48         60           (20.0)        64           (25.7)      185            63         191.8
PAT Margins(%)                       2.7        3.3                         2.9                      2.5            1.0             -
EPS (`)                              2.2        2.8           (20.0)        3.0          (25.7)      8.7            3.0        192.3
Source: Company, Angel Research


                                             Exhibit 2: Actual vs. estimates
                                              (` cr)                                    Actual          Estimates             Var (%)
                                              Revenue                                   1,790               2,053              (12.8)
                                              EBITDA                                       97                121               (19.5)
                                              Interest                                      5                 10               (47.8)
                                              Tax                                          24                 33               (27.7)
                                              PAT                                          47                 68               (30.9)
                                              Source: Company, Angel Research




May 10, 2012                                                                                                                        2
                                                                                                                         ABB India | 1QCY2012 Result Update



                                               Revenue remains flat: For 1QCY2012, the company’s revenue stood flat at
                                               `1,790cr (`1,793cr). Power products and low voltage products were the only two
                                               segments that reported growth during the quarter at 4.1% and 11.5% yoy,
                                               respectively. Revenue from the process automation segment witnessed a steep
                                               decline of 7.9% yoy and that from the power systems and discrete automation
                                               segments stood flat.


                                               Exhibit 3: Revenue for the quarter remains flat
                                                2,500                                                                                                                                                   35.0
                                                                                                                                                                                                        30.0
                                                2,000                                                                                                                                                   25.0
                                                                                                                                                                                                        20.0
                                                                                                                                                                                                        15.0
                                                1,500
                                                                                                                                                                                                        10.0
                                                                                                                                                                                                        5.0
                                                1,000                                                                                                                                                   -
                                                                                                                                                                                                        (5.0)
                                                    500                                                                                                                                                 (10.0)
                                                                                                                                                                                                        (15.0)
                                                     -                                                                                                                                                  (20.0)
                                                            3QCY08

                                                                      4QCY08

                                                                               1QCY09

                                                                                        2QCY09

                                                                                                 3QCY09

                                                                                                          4QCY09

                                                                                                                    1QCY10

                                                                                                                               2QCY10

                                                                                                                                        3QCY10

                                                                                                                                                 4QCY10

                                                                                                                                                           1QCY11

                                                                                                                                                                    2QCY11

                                                                                                                                                                             3QCY11

                                                                                                                                                                                      4QCY11

                                                                                                                                                                                               1QCY12
                                                                                        Sales (` cr, LHS)                                Growth (yoy %, RHS)

                                               Source: Company, Angel Research


Exhibit 4: Segment-wise performance
Y/E Dec. (` cr)                   1QCY12   1QCY11        %chg (yoy)               4QCY11                    %chg (qoq)                            CY11                       CY10               %chg (yoy)
Revenue
Power Systems                      568.9    572.3               (0.6)                   731.4                          (22.2)                    2,362                       1,827                       29.3
Power Products                     458.0    440.0                    4.1                595.2                          (23.0)                    2,001                       1,816                       10.2
Process Automation                 303.9    329.8               (7.9)                   425.5                          (28.6)                    1,322                       1,189                       11.2
Discrete Automation                414.1    417.4               (0.8)                   527.1                          (21.5)                    1,799                       1,593                       13.0
Low Voltage Products               144.7    129.7                11.5                   144.9                                (0.2)               539.9                       448.6                       20.4
Total                              1,889    1,904               (0.8)                   2,424                          (22.1)                    8,024                       6,872                       16.8
EBIT
Power Systems                       28.2      1.7          1,547.8                        (1.3)                    (2,191.9)                        (0.8)                    (111)                      (99.2)
Power Products                      10.7     21.4            (50.0)                       39.9                         (73.1)                       99.8                      81.9                       21.9
Process Automation                   8.3     21.7            (61.6)                       (5.4)                     (255.2)                         37.7                      81.6                      (53.8)
Discrete Automation                 43.2     50.9            (15.0)                       77.9                         (44.5)                    206.6                       132.1                       56.4
Low Voltage Products                 8.2     10.4            (21.5)                          8.3                             (0.8)                  34.1                         1.8                    1,786
Total                               98.7    106.1               (7.0)                   119.3                          (17.3)                    377.5                       186.9                      102.0
EBIT Margin (%)
Power Systems                        5.0      0.3                                         (0.2)                                                  (0.04)                       (6.0)                       5.0
Power Products                       2.3      4.9                                            6.7                                                          5.0                    4.5                      2.3
Process Automation                   2.7      6.6                                         (1.3)                                                           2.9                    6.9                      2.7
Discrete Automation                 10.4     12.2                                         14.8                                                      11.5                         8.3                     10.4
Low Voltage Products                 5.7      7.2                                            5.7                                                          6.3                    0.4                      5.7
Source: Company, Angel Research




May 10, 2012                                                                                                                                                                                                 3
                                                                                                                                                                                                     ABB India | 1QCY2012 Result Update




Exhibit 5: Power systems: Flat for the quarter                                                                                                        Exhibit 6: Power products: Growth at modest 4.1% yoy
                                                                                     48.949.6                                                                  26.8                                                                                                                      24.6
   800                                                                                                          39.4                         60.0        800                                                                                                                                                           30.0

   640                                                                                                 21.7                                  40.0        640                                                                                                                                                           20.0
                                                                                                                         15.2                                                                                                                                                                      10.1
                                                                    2.8                                                            (0.6)     20.0                                                                                                                             5.6
   480                                                                                                                                                   480                                                                                                                                                 4.1       10.0
                   (12.7)
                       (12.8)                                 (10.1)
                                                         (14.5)                                                                                                         (0.1)                1.4                                                                1.9
                                                                                                                                             0.0                             (2.2)(3.8)(4.1)
   320                      (25.4)
                                                                                                                                                         320                                                                                                                                                           0.0
                                                                                                                                             (20.0)                                                                                      (8.8)
         (43.2)                                (43.2)                                                                                                                                                                          (11.5)
   160                                                                                                                                       (40.0)      160                                                                        (15.7)                                                                             (10.0)
     0                                                                                                                                       (60.0)        0                                                                                                                                                           (20.0)
          4QCY08

                    1QCY09

                             2QCY09

                                      3QCY09

                                                4QCY09

                                                          1QCY10

                                                                   2QCY10

                                                                            3QCY10

                                                                                     4QCY10

                                                                                              1QCY11

                                                                                                       2QCY11

                                                                                                                3QCY11

                                                                                                                          4QCY11

                                                                                                                                    1QCY12




                                                                                                                                                               4QCY08

                                                                                                                                                                         1QCY09

                                                                                                                                                                                   2QCY09

                                                                                                                                                                                              3QCY09

                                                                                                                                                                                                          4QCY09

                                                                                                                                                                                                                      1QCY10

                                                                                                                                                                                                                                2QCY10

                                                                                                                                                                                                                                          3QCY10

                                                                                                                                                                                                                                                       4QCY10

                                                                                                                                                                                                                                                                   1QCY11

                                                                                                                                                                                                                                                                              2QCY11

                                                                                                                                                                                                                                                                                         3QCY11

                                                                                                                                                                                                                                                                                                   4QCY11

                                                                                                                                                                                                                                                                                                              1QCY12
                             Power Systems                                                       Growth (yoy %, RHS)                                                                       Power Products                                                              Growth (yoy %, RHS)


Source: Company, Angel Research                                                                                                                       Source: Company, Angel Research


Exhibit 7: Process automation continues to dip                                                                                                        Exhibit 8: Discrete automation remains flat

   640   62.0                                                                                                                                80.0        640                                                                28.4                                                                                       40.0
                                                                                                                                                               27.027.5                                                                                                                  26.1
                                                                                                                                             60.0                                                                                                                                                                      30.0
   480                                                                                                                                                   480                                                                         14.7                                     15.4
                                                                                                       30.127.5                                                                                                                                                                                    8.1                 20.0
                                                                                                                                             40.0                                                      7.4 6.7                                                      5.4
                                     14.0                                                     15.1                                                                                                                                                                                                           (0.8)     10.0
                        10.0
   320                                             3.6                                                                                       20.0        320
                            (2.9)                                                                                        (7.1)(7.9)                                                                                                                                                                                    0.0
                                (12.7)       (9.2)                                                                                                                                                                                                 (13.8)
                   (14.9)                                                                                                                    0.0
                                                                                                                                                         160                     (19.5)
                                                                                                                                                                             (21.9)                                                                                                                                    (10.0)
   160                                  (27.8)                                                                                                                                                                                            (23.1)
                                                                                                                                             (20.0)                                                                                                                                                                    (20.0)
     0                                                                                                                                       (40.0)        0                                                                                                                                                           (30.0)
                                                                                                                                                               3QCY08
                                                                                                                                                                        4QCY08
                                                                                                                                                                                  1QCY09
                                                                                                                                                                                            2QCY09
                                                                                                                                                                                                       3QCY09
                                                                                                                                                                                                                   4QCY09
                                                                                                                                                                                                                            1QCY10
                                                                                                                                                                                                                                     2QCY10
                                                                                                                                                                                                                                              3QCY10
                                                                                                                                                                                                                                                          4QCY10
                                                                                                                                                                                                                                                                     1QCY11
                                                                                                                                                                                                                                                                                2QCY11
                                                                                                                                                                                                                                                                                          3QCY11
                                                                                                                                                                                                                                                                                                    4QCY11
                                                                                                                                                                                                                                                                                                              1QCY12
          4QCY08

                    1QCY09

                             2QCY09

                                      3QCY09

                                                4QCY09

                                                          1QCY10

                                                                   2QCY10

                                                                            3QCY10

                                                                                     4QCY10

                                                                                              1QCY11

                                                                                                       2QCY11

                                                                                                                3QCY11

                                                                                                                          4QCY11

                                                                                                                                    1QCY12




                               Process Automation                                                      Growth (yoy %, RHS)                                                          Automation products                                                                     Growth (yoy %, RHS)


Source: Company, Angel Research                                                                                                                       Source: Company, Angel Research


                                                                                                                         Margin declines slightly: EBIT margin for the quarter came in at 4.2%, down from
                                                                                                                         4.9% yoy and below our estimate of 5.2%. Power systems witnessed a sharp revival
                                                                                                                         in profitability with profit margin at 5.0%, up from 0.3% yoy. However, power
                                                                                                                         products, process automation and discrete automation saw declining margins for
                                                                                                                         the quarter. Adjusting for notional forex loss of `33cr, EBIT margin actually came
                                                                                                                         in at 6%. Reported PAT margin declined to 2.7% in 1QCY2012 from 3.3% in
                                                                                                                         1QCY2011.




 May 10, 2012                                                                                                                                                                                                                                                                                                                   4
                                                                                           ABB India | 1QCY2012 Result Update




               Exhibit 9: EBIT margin on a recovery path
                     25.0
                     20.0
                     15.0
                     10.0
                       5.0




               (%)
                       0.0
                      (5.0)
                     (10.0)
                     (15.0)



                                4QCY08


                                          1QCY09


                                                   2QCY09


                                                            3QCY09


                                                                         4QCY09


                                                                                  1QCY10


                                                                                             2QCY10


                                                                                                         3QCY10


                                                                                                                  4QCY10


                                                                                                                           1QCY11


                                                                                                                                     2QCY11


                                                                                                                                              3QCY11


                                                                                                                                                       4QCY11


                                                                                                                                                                1QCY12
                     Power Systems       Power Products              Process Automation               Automation products           Others/Low Voltage Products

               Source: Company, Angel Research




May 10, 2012                                                                                                                                                             5
                                                                                                                                                  ABB India | 1QCY2012 Result Update



                                                                                      Order flow surprised negatively: Order intake during the quarter declined by 3.7%
                                                                                      yoy to `1,632cr, with order backlog standing at `9,028cr for 1QFY2012.
                                                                                      Management highlighted that both power products and power systems witnessed
                                                                                      double-digit growth; however, the process automation segment, which largely
                                                                                      sources orders from the industry witnessed a decline in order flows. Management
                                                                                      attributed the decline in order inflows from industries to overcapacity and high cost
                                                                                      of capital.

Exhibit 10: Order inflow trend                                                                                    Exhibit 11: Order backlog trend
 3,000                                                                                                     100     10,000                                                                                                             45
                                                                                                           80       9,000                                                                                                             40
 2,500
                                                                                                                    8,000                                                                                                             35
                                                                                                           60
                                                                                                                    7,000                                                                                                             30
 2,000
                                                                                                           40                                                                                                                         25
                                                                                                                    6,000
 1,500                                                                                                     20                                                                                                                         20
                                                                                                                    5,000
                                                                                                                                                                                                                                      15
                                                                                                           0        4,000
 1,000                                                                                                                                                                                                                                10
                                                                                                           (20)     3,000                                                                                                             5
   500                                                                                                              2,000                                                                                                             0
                                                                                                           (40)
                                                                                                                    1,000                                                                                                             (5)
     0                                                                                                     (60)
                                                                                                                       0                                                                                                              (10)
         4Q08

                1Q09

                       2Q09

                              3Q09

                                     4Q09

                                            1Q10

                                                   2Q10

                                                          3Q10

                                                                 4Q10

                                                                        1Q11

                                                                               2Q11

                                                                                      3Q11

                                                                                             4Q11

                                                                                                    1Q12




                                                                                                                            3Q08

                                                                                                                                   4Q08

                                                                                                                                          1Q09

                                                                                                                                                 2Q09

                                                                                                                                                        3Q09

                                                                                                                                                               4Q09

                                                                                                                                                                      1Q10

                                                                                                                                                                             2Q10

                                                                                                                                                                                    3Q10

                                                                                                                                                                                           4Q10

                                                                                                                                                                                                   1Q11

                                                                                                                                                                                                          2Q11

                                                                                                                                                                                                                 3Q11

                                                                                                                                                                                                                        4Q11

                                                                                                                                                                                                                               1Q12
                   Order inflow (` cr, LHS)                             Growth (yoy %, RHS)                                          Order backlog (` cr, LHS)                                    Growth (yoy %, RHS)

Source: Company, Angel Research                                                                                   Source: Company, Angel Research


                                                                                      Key highlights of the conference call

                                                                                             Management stated that though India remains a highly competitive market,
                                                                                             prices have begun to stabilize. During the quarter, the company also launched
                                                                                             new products such as dry type distribution transformers and GIS switchgears.

                                                                                             Management expects long-term margin to be at 8-10%.

                                                                                             Rural electrification orders now stand at just `25cr.




May 10, 2012                                                                                                                                                                                                                             6
                                                                                                  ABB India | 1QCY2012 Result Update



                                             Outlook and valuation: With decent order inflows expected in the power products
                                             and power system segments along with recovery in profitability due to supply chain
                                             initiatives, exit from rural electrification projects and a debt-free balance sheet,
                                             we expect ABB’s fundamentals to steadily improve going forward. However, with
                                             the stock trading at 41x and 36x PE on CY2012E and CY2013E EPS estimates, we
                                             believe it remains overvalued. Hence, we maintain our Sell view on the stock with a
                                             target price of `498.

                                             Change in estimates: We slightly reduce our revenue estimates by 1.8% and 1.9%
                                             for CY2012E and CY2013E, respectively, as we lower our order inflow and
                                             execution expectations. However, we largely maintain our margin expectations for
                                             both CY2012E and CY2013E earnings estimates.

Exhibit 12: Change in estimates
                                             CY2012E                                                                      CY2013E
                         Earlier estimates     Revised estimates             Var.              Earlier estimates              Revised estimates                     Var.
 Revenue                            8,926                        8,760       (1.8)                          10,220                               10,023             (1.9)
 EBITDA                               683                         662        (3.1)                               762                               748              (1.9)
 PAT                                  395                         386        (2.2)                               444                               440              (1.0)
Source: Company



                                             Exhibit 13: Angel EPS forecast
                                              EPS                                                            Angel                   Bloomberg                       Var.
                                              CY2012E                                                            18.2                        15.6                   17.0
                                              CY2013E                                                            20.7                        21.3                   (2.7)
                                             Source: Company



                                             Exhibit 14: One-year forward P/E band
                                              1,800

                                              1,500

                                              1,200

                                                900

                                                600

                                                300

                                                    0
                                                                             Apr-08




                                                                                                                            Aug-10



                                                                                                                                        Mar-11



                                                                                                                                                     Oct-11
                                                        Feb-07



                                                                   Sep-07




                                                                                      Nov-08




                                                                                                                                                                     May-12
                                                                                                  Jun-09



                                                                                                                 Jan-10




                                                                            Share price (`)                25x            35x           45x                   55x

                                             Source: Company, Angel Research




May 10, 2012                                                                                                                                                            7
                                                                                                ABB India | 1QCY2012 Result Update




Exhibit 15: Peer comparison
Company              Reco.     CMP Tgt. price          Upside/     P/BV(x)           P/E(x)         FY2011-13E    RoCE (%)       RoE (%)
                                (`)        (`) (Downside) (%) FY13E FY14E FY13E FY14E                EPS CAGR FY13E FY14E FY13E FY14E
ABB*                 Sell      747        498          (33.4)   5.5   4.9  41.0  36.0                     54.3 21.0  21.1  14.4  14.6
BHEL                 Neutral   216           -                 -   1.8       1.6    9.2       9.0         (6.3)   26.7   24.0   21.3   18.9
BGR Energy           Neutral   303           -                 -   1.8       1.6   11.2   10.0             1.4    10.1    9.9   17.3   17.4
Crompton Greaves Buy           121        164               35.6   1.9       1.7   11.2   10.3            33.4    19.5   20.2   18.4   17.3
Jyoti Structures     Buy        39         67               71.6   0.4       0.4    3.6       2.9          5.9    18.2   19.6   12.7   13.9
KEC International    Buy        51    73.136                42.4   0.9       0.8    4.9       4.2          2.5    21.5   21.1   25.9   24.0
Thermax              Neutral   426           -               0.8   2.7       2.4   14.0   14.9            (9.9)   24.3   20.5   20.5   16.9
Source: Company, Angel Research. Note*: December year end




May 10, 2012                                                                                                                               8
                                                        ABB India | 1QCY2012 Result Update



               Profit and loss statement
               Y/E December (` cr)                   CY2009    CY2010    CY2011 CY2012E CY2013E
               Operating income                       6,237     6,287     7,370   8,760   10,023
                % chg                                  (8.8)      0.8      17.2    18.9     14.4
               Total Expenditure                      5,710     6,203     7,087   8,098    9,275
               Raw Materials                          1,823     2,577     2,717   2,956    3,442
               Mfg costs                              2,695     2,225     2,761   3,504    4,009
               Personnel Costs                          389       490       587     753     802
               Other Costs                              803       911     1,022     885    1,022
               EBITDA                                   527        84       283     662     748
                % chg                                 (31.5)    (84.1)    238.0   133.7     13.0
                (% of Net Sales)                        8.5       1.3       3.8     7.6      7.5
               Depreciation & Amortisation               49        52        80      98     111
               EBIT                                     479        32       204     564     636
                % chg                                 (34.7)    (93.3)    534.1   176.9     12.9
                (% of Net Sales)                        7.7       0.5       2.8     6.4      6.3
               Interest & other Charges                  24        17        31      26      20
               Other Income                              73        86        95      35      35
                (% of PBT)                             13.8      85.3      35.4     6.1      5.4
               Recurring PBT                            527       100       268     572     651
                % chg                                 (36.7)    (81.0)    167.1   113.7     13.8
               Extraordinary Expense/(Inc.)                -         -        -       -        -
               PBT (reported)                           527       100       268     572     651
               Tax                                      173        37        83     186     212
                (% of PBT)                             32.8      36.9      31.1    32.5     32.5
               PAT (reported)                           355        63       185     386     440
               Add: Share of earnings of associate         -         -        -       -        -
               Less: Minority interest (MI)                -         -        -       -        -
               Prior period items                          -         -        -       -        -
               PAT after MI (reported)                  355        63       185     386     440
               ADJ. PAT                                 355        63       185     386     440
                % chg                                 (35.2)    (82.2)    191.8   109.3     13.8
                (% of Net Sales)                        5.7       1.0       2.5     4.4      4.4
               Basic EPS (`)                           16.7       3.0       8.7    18.2     20.7
               Fully Diluted EPS (`)                   16.7       3.0       8.7    18.2     20.7
                % chg                                 (35.2)    (82.2)    191.8   109.3     13.8




May 10, 2012                                                                                   9
                                              ABB India | 1QCY2012 Result Update



               Balance sheet
               Y/E December (` cr)         CY2009   CY2010   CY2011 CY2012E CY2013E
                SOURCES OF FUNDS
                Equity Share Capital           42       42       42      42      42
                Preference Capital              -        -        -       -       -
                Reserves & Surplus          2,381    2,381    2,492   2,828   3,169
                Shareholders’ Funds         2,424    2,424    2,535   2,871   3,212
                Minority Interest               -        -        -       -       -
                Total Loans                     -        -        -       -       -
                Deferred Tax Liability          -        -        -       -       -
                Total Liabilities           2,424    2,424    2,535   2,871   3,212
                APPLICATION OF FUNDS
                Gross Block                   879      998    1,462   1,662   1,887
                Less: Acc. Depreciation       206      232      294     392     503
                Net Block                     673      766    1,168   1,270   1,384
                Capital Work-in-Progress      116       58       84      50      50
                Goodwill                        -        -        -       -       -
                Investments                    17       17       51      51      51
                Deferred Tax Asset              0        5       22      22      22
                Current Assets              4,749    4,926    4,960   6,126   6,668
                   Cash                       524      587      264     309     326
                   Loans & Advances           318      354      367     402     460
                   Inventories                729      698      926     975   1,077
                   Debtors                  2,858    2,926    3,083   3,960   4,256
                   Others                     320      361      321     480     549
                Current liabilities         3,132    3,348    3,751   4,649   4,964
                Net Current Assets          1,617    1,579    1,209   1,478   1,704
                Total Assets                2,424    2,424    2,535   2,871   3,212




May 10, 2012                                                                     10
                                                        ABB India | 1QCY2012 Result Update



               Cash flow statement
               Y/E December (` cr)            CY2009     CY2010    CY2011    CY2012E    CY2013E
               Profit before tax                 527        100       268        572        651
               Depreciation                       49         52        80         98        111
               (Inc)/Dec in Working Capital      (63)       102        47       (224)      (210)
               Less: Other income                (73)       (86)      (95)       (35)       (35)
               Direct taxes paid                (173)       (37)      (83)      (186)      (212)
               Cash Flow from Operations         268        131       216        226        306
               (Inc.)/Dec.in Fixed Assets       (163)      (104)     (513)      (166)      (225)
               (Inc.)/Dec. in Investments         44          0       (33)         0          0
               Other income                       73         86        95         35         35
               Cash Flow from Investing          (46)       (19)     (452)      (131)      (190)
               Issue of Equity                      -          -         -          -          -
               Inc./(Dec.) in loans               (0)         0         0          0          0
               Dividend Paid (Incl. Tax)         (50)       (50)      (74)       (50)       (99)
               Others                              4          0         0          0          0
               Cash Flow from Financing          (50)       (50)      (74)       (50)       (99)
               Inc./(Dec.) in Cash               176         63      (311)        45         17
               Opening Cash balances             348        524       587        276        321
               Closing Cash balances             524        587       276        321        338




May 10, 2012                                                                                  11
                                                      ABB India | 1QCY2012 Result Update



               Key ratios
               Y/E December                        CY2009    CY2010    CY2011 CY2012E CY2013E
                Valuation Ratio (x)
                P/E (on FDEPS)                       44.6     250.3      85.8     41.0     36.0
                P/CEPS                               39.3     137.8      59.9     32.7     28.7
                P/BV                                  6.6       6.5       6.2      5.5      4.9
                Dividend yield (%)                    0.3       0.3       0.4      0.3      0.5
                EV/Sales                              2.5       2.4       2.1      1.8      1.5
                EV/EBITDA                            29.0     181.8      54.8     23.4     20.7
                EV / Total Assets                     6.3       6.3       6.2      5.4      4.8
               OB/Sales                               1.4       1.3       1.4      1.3      1.2
                Per Share Data (`)
                EPS (Basic)                          16.7       3.0       8.7     18.2     20.7
                EPS (fully diluted)                  16.7       3.0       8.7     18.2     20.7
                Cash EPS                             19.0       5.4      12.5     22.9     26.0
                DPS                                   2.0       2.0       3.0      2.0      4.0
                Book Value                          113.7     114.4     119.6    135.5    151.5
                DuPont Analysis (%)
                EBIT margin                           7.7       0.5       2.8      6.4      6.3
                Tax retention ratio (%)              67.2      63.1      68.9     67.5     67.5
                Asset turnover (x)                    3.5       3.4       3.7      3.7      3.7
                RoIC (Pre-tax)                       26.6       1.7      10.1     23.8     23.8
                RoIC (Post-tax)                      17.9       1.1       7.0     16.1     16.1
                Cost of Debt (Post Tax)                  -         -     21.1      0.0      0.0
                Leverage (x)                         (0.2)     (0.2)     (0.2)    (0.1)    (0.1)
                Operating ROE                        14.1       0.8       9.6     14.1     14.1
                Returns (%)
                RoCE (Pre-tax)                       21.2       1.3       8.3     21.0     21.1
                Angel RoIC (Pre-tax)                 28.7       1.8      10.5     24.5     24.3
                RoE                                  15.7       2.6       7.5     14.4     14.6
                Turnover ratios (x)
                Asset Turnover (Gross Block) (X)      7.6       6.7       6.0      5.6      5.6
                Inventory / Sales (days)               40        41        40       40       37
                Receivables (days)                    171       168       149     147      150
                Payables (days)                       197       181       172     176      161
                WC cycle (ex-cash) (days)              62        61        48       44       46
                Solvency ratios (x)
                Net debt to Equity                   (0.2)     (0.2)     (0.1)    (0.1)    (0.1)
                Net debt to EBITDA                   (1.0)     (7.2)     (1.1)    (0.5)    (0.5)
                Interest Coverage                    19.9       1.8       6.6     21.4     31.7




May 10, 2012                                                                                 12
                                                                                             ABB India | 1QCY2012 Result Update




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 Disclosure of Interest Statement                                               ABB India
 1. Analyst ownership of the stock                                                 No
 2. Angel and its Group companies ownership of the stock                           No
 3. Angel and its Group companies' Directors ownership of the stock                No
 4. Broking relationship with company covered                                      No

 Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.



 Ratings (Returns):              Buy (> 15%)                      Accumulate (5% to 15%)                 Neutral (-5 to 5%)
                                 Reduce (-5% to 15%)              Sell (< -15%)

May 10, 2012                                                                                                                              13