ABB India shares tumble over 8% after January-March quarter earnings
The company's 30% jump in net profit failed to impress investors amid weak order inflow.
Shares of engineering firm ABB India on Tuesday plunged over 8% after the company's January-March quarter earnings failed to impress investors amid weak order inflow.
The stock tumbled 7.84% to Rs 1,240.60 at BSE. On the National Stock Exchange (NSE), it slipped 8.13% to Rs 1,236.10.
At 1306 hrs, the company’s stock was dealing at Rs 1,293.20, down Rs 53.00 or 3.94% on the BSE. On the National Stock Exchange (NSE) it was trading at Rs 1,293.85, down Rs 51.75 or 3.85%.
The company received orders worth Rs 1,830 crore in the first quarter of 2016 (January-March) against Rs 1,856 crore in the same quarter of the previous fiscal.
"Large orders, especially those based on industry capex, remained scarce as customers continued to delay investment decisions on low demand and under-utilised capacity," the company said in a release on Monday.
ABB India posted 30% jump in net profit at Rs 70.98 crore in the January-March quarter as compared to Rs 54.29 crore in the corresponding period a year ago, the company had said.
The firm’s total income increased to Rs 2,015.08 crore for the quarter ended March 31, 2016, from Rs 1,815.29 crore during the same quarter in the year-ago period.