Axis securities's research report on ABBABB’s Q4CY15revenue at Rs24bnwasin line withour expectation of Rs24bn. EBITDA margin improved 290 bps YoYand beat our estimate by 180 bps. PAT at Rs1.3bn was 17% above our estimate on higher EBITDA (20% beat)offset somewhat by higher tax rate (38%) during the quarter. Order inflow at Rs20.6bndeclined by17% YoYdue to lack of large orders from conventional sectors, however base orders grew by ~10% YoY. Management indicated that demandfrom conventional sectors (steel, cement, etc.) and exports remainedweak (declined to ~12% of sales from ~17% in CY14), however impact was offset by growth from new sectors such as renewables, railways, etc. as well as growth in opex- driven services business (~Rs 10 bn in CY15).We cut our CY16 revenue growth to 10% (vs14% earlier) due to lower than expected order inflow in Q4 and flat order backlog YoY. Accordingly, we cutour CY16 EPS to Rs24 (Rs27 earlier).We introduce our CY17E EPS at Rs 30. Our TP stands atRs 1,213 (40x CY17E).For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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