4QCY2011 Result Update | Capital Goods

February 23, 2012

ABB India
Performance Highlights
(` cr) Revenue EBITDA EBITDA margin (%) Reported PAT 4QCY11 2,200 108.0 4.9 64.1 4QCY10 2,072 32.7 1.6 6.8 % chg (yoy) 6.2 230.5 333bp 847.4 3QCY11 1,744 66.6 3.8 22.2 % chg (qoq) 26.2 62.1 109bp 189.4

SELL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Capital Goods 18,561 0.7 915/541 117,780 2 18,079 5,483 ABB.BO ABB@IN

`876 `503
12 Months

Source: Company, Angel Research

ABB Indias (ABB) reported mixed set of numbers for 4CY2011. The company reported lower-than expected top-line growth; however margin expansion and low base effect of the corresponding quarter resulted into strong earnings growth. Order intake during the quarter surged by 58.5% yoy `2,209cr mainly constituted by large orders (~`1,560cr), leading to a robust order book of `9,129cr. We expect strong order accretion in the coming quarters, which will lend improved growth trajectory. In addition, margin recovery in the long term seems likely, given the pricing in the T&D segment has bottomed out. However, overly expensive valuations dont warrant a change in our view; we maintain Sell on the stock. Growth slips; net up mainly on account of low base: For 4QCY2011, the companys top line grew by mere 6.2% yoy to `2,200cr (`2,072cr), which was 8.8% lower than our (below street) estimate of `2,412cr. For CY2011, the companys top line posted healthy growth of 17.1% yoy to `7,449cr (`6,359cr). On the operating front, EBITDA margin expanded by 333bp yoy to 4.9%, in-line with our estimate (5.1%). Margin expansion and lower tax incidence boosted the companys PAT eight-fold (on the corresponding years low base) to `64.1cr, broadly in-line with our estimate (below street) of `61.9cr. For CY2011, PAT grew by 191% yoy to 184.5cr (`63.2cr). Outlook and valuation: Strong order wins in past few quarters, gradual recovery in the operating profitability (due to complete exit from rural electrification projects) and a debt-free balance sheet makes a strong case for improved fundamentals going ahead. However, valuations of 47.0x CY2012 PE and 41.8x CY2013E PE remain overly expensive. We believe the market is factoring in a possible delisting that is keeping the stock at elevated levels. Hence, we maintain sell on the stock on valuation basis with a target price of `503 (PE multiple of 24x CY2013E EPS). Key financials
Y/E December (` cr) Net sales % chg Net profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x) CY2010
6,287 0.8 63 (82.2) 1.3 3.0 293.5 7.7 2.6 1.3 2.9 214.4

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 75.0 13.4 3.2 8.4

Abs. (%) Sensex ABB

3m 15.1 49.3

1yr (0.5) 25.5

3yr 4.2 (26.4)

CY2011*
7,452 18.5 185 192.1 4.9 8.7 100.5 7.3 7.4 11.4 2.5 50.7

CY2012E
8,926 19.8 395 113.7 7.6 18.6 47.0 6.4 14.5 21.1 2.1 26.8

CY2013E
10,220 14.5 444 12.4 7.5 20.9 41.8 5.7 14.4 20.9 1.8 23.9

Shailesh Kanani
+91 22 3937 7600 Ext: 6827 shailesh.kanani@angelbroking.com

Hemang Thaker
+91 22 3937 7600 Ext: 6817 hemang.thaker@angelbroking.com

Source: Company, Angel Research. Note:* The company has reported consolidated numbers for CY2011

Please refer to important disclosures at the end of this report

ABB India | 4QCY2011 Result Update

Exhibit 1: Quarterly performance (Standalone)

(` cr) Net Sales Other operating income Total income Stock adjustments Raw Material (% of total income) Employee Cost (% of total income) Other Expenses (% of total income) Total Expenditure EBITDA (EBITDA %) Interest Depreciation Other Income PBT (PBT%) Total Tax (% of PBT) Reported PAT (PAT %) EPS (`)
Source: Company, Angel Research

4QCY11 2,170 30.2 2,200 20.2 1,515 74.3 154.7 7.0 301.9 13.7 2,092 108.0 4.9 12.9 12.4 1.4 84.0 3.8 19.9 23.7 64.1 2.9 3.0

4QCY10 2,051 21.4 2,072 16.4 1,578.9 80.8 126.9 6.1 201.4 9.7 2,039 32.7 1.6 4.8 14.8 2.6 15.6 0.8 8.8 56.6 6.8 0.3 0.3

% chg (yoy) 5.8 6.2 (4.0) 21.9 49.9 2.6 230.5 166.9 (16.2) 439.2 125.8 847.4 847.4

3QCY11 1,726 17.2 1,744 (9.0) 1194.5 72.0 160.1 9.2 261.5 15.0 1,677 66.6 3.8 7.1 26.3 3.8 37.1 2.1 14.9 40.2 22.2 1.3 1.0

% chg (qoq) 25.7 26.2 26.9 (3.4) 15.4 24.7 62.1 81.8 (52.6) 126.7 33.6 189.4 189.4

CY11 7,370 78.7 7,449 (84.5) 5,563 73.5 586.8 7.9 1022 18.4 7,087 361.8 4.9 30.7 79.5 16.2 267.7 3.6 83.2 31.1 184.5 2.5 8.7

CY10 6,287 72.2 6,359 (9.9) 4,812 75.5 490.1 7.7 911.1 18.9 6,203 156.0 2.5 17.4 51.7 13.3 100.2 1.6 37.0 36.9 63.2 1.0 3.0

% chg (yoy) 17.2 17.1 15.6 19.7 12.1 14.2 131.9 76.4 54.0 167.1 124.9 191.8 192.3

Exhibit 2: Actual vs. estimates

(` cr) Revenue EBITDA Interest Tax PAT
Source: Company, Angel Research

Actual 2,200 108.0 12.9 19.9 64.1

Estimates 2,412 123.0 7.5 29.8 61.9

Var (%) (8.8) (12.2) 72.3 (33.2) 3.5

February 23, 2012

ABB India | 4QCY2011 Result Update

Top line decelerates: For 4QCY2011, the companys top line grew by mere 6.2% yoy to `2,200cr (`2,072cr). Modest growth during the quarter can largely be attributed to the process automation segment, which declined by 7.1% yoy (large automation projects failed to materialize), thus overshadowing the decent growth delivered by the power systems (15.2%) and power products (10.2%) segments.

Exhibit 3: Trend in revenue

2,500 2,000 1,500 1,000 500 0 4QCY08 1QCY09 2QCY09 3QCY09 4QCY09 1QCY10 2QCY10 3QCY10 4QCY10 1QCY11 2QCY11 3QCY11 4QCY11 (5.6) (9.2) (7.1) 20.2 4.9 (3.4) (14.0) (8.2) 9.0 21.5 29.2 17.0 6.2 40.0 30.0 20.0 10.0 (10.0) (20.0)

Sales (` cr, LHS) Source: Company, Angel Research

Growth (yoy %, RHS)

Exhibit 4: Segment-wise performance (Standalone)

Y/E Dec. (` cr) Revenue Power Systems Power Products Process Automation Discrete Automation Low Voltage Products Total EBIT Power Systems Power Products Process Automation Discrete Automation Low Voltage Products Total EBIT Margin (%) Power Systems Power Products Process Automation Discrete Automation Low Voltage Products Total
Source: Company, Angel Research

4QCY11 731.4 595.2 425.5 527.1 144.9 2,424 (1.3) 39.9 (5.4) 77.9 8.3 119.3 (0.2) 6.7 (1.3) 14.8 5.7 4.9

4QCY10 635.0 540.4 458.2 487.5 144.0 2,265 (38.1) 20.4 34.6 27.1 (1.2) 42.8 (6.0) 3.8 7.6 5.6 (0.8) 1.9

%chg (yoy) 15.2 10.1 (7.1) 8.1 0.7 7.0 95.7 187.5 178.8

3QCY11 546.2 497.5 278.1 434.4 139.1 1,895 2.3 16.4 6.4 45.9 2.9 73.9 0.4 3.3 2.3 10.6 2.1 3.9

%chg (qoq) 33.9 19.6 53.0 21.4 4.2 27.9 142.6 69.7 184.3 61.3

CY11 2,362 2,001 1,322 1,799 539.9 8,024 (0.8) 99.8 37.7 206.6 34.1 377.5 (0.04) 5.0 2.9 11.5 6.3 4.7

CY10 1,827 1,816 1,189 1,593 448.6 6,872 (111) 81.9 81.6 132.1 1.8 186.9 (6.0) 4.5 6.9 8.3 0.4 2.7

%chg (yoy) 29.3 10.2 11.2 13.0 20.4 16.8 (99.2) 21.9 (53.8) 56.4 1,786 102.0 (0.2) 6.7 (1.3) 14.8 5.7 4.9

February 23, 2012

ABB India | 4QCY2011 Result Update

Exhibit 5: Trend in revenues Power systems

800 640 480 320 160 0 4QCY08 1QCY09 2QCY09 3QCY09 4QCY09 1QCY10 2QCY10 3QCY10 4QCY10 1QCY11 2QCY11 3QCY11 4QCY11 2.8 (12.7)12.8) ( (25.4) (43.2) (10.1) (14.5) 48.9 49.6 21.7 39.4 15.2 60.0 40.0 20.0 0.0 (20.0) (40.0) (60.0)

Exhibit 6: Trend in revenues Power products

800 640 480 320 160 0 4QCY08 1QCY09 2QCY09 3QCY09 4QCY09 1QCY10 2QCY10 3QCY10 4QCY10 1QCY11 2QCY11 3QCY11 4QCY11 40.0 30.0 8.1 20.0 10.0 0.0 (10.0) (20.0) (30.0) 3QCY08 4QCY08 1QCY09 2QCY09 3QCY09 4QCY09 1QCY10 2QCY10 3QCY10 4QCY10 1QCY11 2QCY11 3QCY11 4QCY11 (0.1) 1.4 (11.5) (15.7) (8.8) 1.9 5.6 26.8 24.6 10.1 30.0 20.0 10.0 0.0 (10.0) (20.0)

(2.2) (3.8) (4.1)

(43.2)

Power Systems

Growth (yoy %, RHS)

Power Products

Growth (yoy %, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 7: Trend in revenues Process automation

640 480 320 160 0 4QCY08 1QCY09 2QCY09 3QCY09 4QCY09 1QCY10 2QCY10 3QCY10 4QCY10 1QCY11 2QCY11 3QCY11 4QCY11 10.0 (14.9) 14.0 (2.9) (12.7) (9.2) (27.8) 15.1 3.6 (7.1) 62.0 30.1 27.5 80.0 60.0 40.0 20.0 0.0 (20.0) (40.0)

Exhibit 8: Trend in revenues Discrete automation

640 480 7.4 6.7 320 160 0 (19.5) (21.9) (13.8) (23.1) 27.0 27.5 28.4 14.7 5.4 15.4 26.1

Process Automation

Growth (yoy %, RHS)

Automation products

Growth (yoy %, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Margins improve: Segment wise, the power products and discrete automation segments posted a sharp uptick in the EBITM by ~290/340bp (yoy/qoq) and ~920/420bp (yoy/qoq), respectively. On the other hand, process automation segment posted a loss, thus impacting the overall profitability. Nonetheless, the companys blended EBITDA margin expanded by 333bp yoy to 4.9%. Notably the margins improved by ~110bp sequentially, indicating gradual recovery. For CY2011, EBITDAM came in at 4.9%, registering a yoy improvement of ~360bp.

Exhibit 9: EBIT on a gradual recovery

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

Power Systems Automation products

Power Products Others/Low Voltage Products

Process Automation

Source: Company, Angel Research

February 23, 2012

ABB India | 4QCY2011 Result Update

Robust order intake: Order intake during the quarter surged by 58.5% yoy `2,209cr mainly constituted by large orders (~`1,560cr). In addition, base orders (below `70cr) continued to fill the shelf. For CY2011, the order intake stood at `8,188cr, a growth of 29% over CY2010. Amid strong intake, the companys order backlog at the end of the quarter stood at `9,129cr (1.2x CY2011 revenues)

Exhibit 10: Order inflow trend

3,000 2,500 2,000 1,500 1,000 500 0 4QCY08 1QCY09 2QCY09 3QCY09 4QCY09 1QCY10 2QCY10 3QCY10 4QCY10 1QCY11 2QCY11 3QCY11 4QCY11 (4.4) 0.2 (14.5) (37.1) 7.3 (26.7) (41.5) (41.3) 0.4 45.2 22.7 88.5 58.5 120.0 90.0 60.0 30.0 0.0 (30.0) (60.0)

Exhibit 11: Order backlog trend

10,000 8,000 22.6 6,000 4,000 2,000 0 4QCY08 1QCY09 2QCY09 3QCY09 4QCY09 1QCY10 2QCY10 3QCY10 4QCY10 1QCY11 2QCY11 3QCY11 4QCY11 (20.0) 13.9 12.5 18.1 11.9 37.6 24.5 14.4 8.2 (0.5) (4.8) (1.4) (0.3) 0.0 20.0 40.0

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 highlighted the impact of cost overruns in few projects and competition in for lower margins. Management is optimistic about order accretion both power and automation segments. Power segment order will largely driven PGCIL (12th plan orders commence shortly). Industrial automation segment is likely to witness strong ordering on back of revival across industries and traction in metro projects like DMRCIII, Bengaluru metro, airports etc. Management continued to lay strong emphasis on cost reduction strategies to improve overall competitiveness across power and automation segments.

February 23, 2012

ABB India | 4QCY2011 Result Update

Outlook and valuation: Strong order wins in past few quarters, gradual recovery in the operating profitability (due to complete exit from rural electrification projects) and a debt-free balance sheet makes a strong case for improved fundamentals going ahead. However, valuations of 47.0x CY2012 PE and 41.8x CY2013E PE remain overly expensive. We believe the market is factoring in a possible delisting that is keeping the stock at elevated levels. Hence, we maintain sell on the stock on valuation basis with a target price of `503 (PE multiple of 24x CY2013E EPS). Change in estimates: We retain our growth and margin estimates for CY2012E; however we increase our earnings estimates for CY2012E by 4.7%, factoring in lower interest cost. In addition, we introduce CY2013 estimates and will accordingly revise the same based on the companys performance in the coming quarters.

Exhibit 12: Change in estimates (CY2012E)

Earlier estimates Revenues EBITDA EBITDA (%) PAT EPS Order inflows
Source: Company, Angel Research

Revised estimates 8,926 683 7.6 395 18.6 7,428

Var (%) 0.3 0.6 1.6 4.7 4.7 9.2

8,895 679 7.6 377 17.8 6,800

Exhibit 13: Angel EPS vs Consensus

Y/E Dec. CY2012E CY2013E
Source: Company, Angel Research

Angel forecast 18.6 20.9

Bloomberg consensus 18.8 24.5

Var. (%) (0.6) (14.7)

Exhibit 14: One-year forward P/E band

1,800 1,500 1,200

(`)

900 600 300 0 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 55x Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

Share price (`) Source: Company, Angel Research

25x

35x

45x

February 23, 2012

ABB India | 4QCY2011 Result Update

Exhibit 15: Peer Comparison

Company ABB* BHEL BGR Energy Crompton Greaves Jyoti Structures KEC International Thermax Reco. Sell Neutral Neutral Neutral Accum. Neutral Reduce CMP Tgt. price (`) 876 312 325 152 50 58 531 503 54 456 Upside/ (42.6) 8.3 (14.2) P/BV(x) 6.4 3.0 2.2 2.8 0.6 1.4 3.9 5.7 2.6 2.0 2.4 0.6 1.2 3.3 P/E(x) 47.0 11.0 11.0 23.0 4.2 8.8 15.1 41.8 13.3 12.0 14.0 4.6 6.0 17.5 FY2011-13E 55.0 (2.4) (22.1) (13.3) (5.3) 10.4 (2.6) RoCE (%) 21.1 39.5 13.4 13.7 21.7 17.0 33.3 20.9 26.5 10.1 19.5 18.2 19.0 24.3 RoE (%) 14.5 30.6 21.0 12.5 15.8 23.9 28.5 14.4 21.1 17.3 17.9 12.7 27.6 20.5 (`) (Downside) (%) FY12E FY13E FY12E FY13E EPS CAGR FY12E FY13E FY12E FY13E

Source: Company, Angel Research. Note*: December year end

February 23, 2012

ABB India | 4QCY2011 Result Update

Profit and loss statement (Standalone)

Y/E December (` cr) Operating income % chg Total Expenditure Raw Materials Mfg costs Personnel Costs Other Costs EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earnings of associate Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg CY2009 6,237 (8.8) 5,710 1,823 2,695 389 803 527 (31.5) 8.5 49 479 (34.7) 7.7 24 73 13.8 527 (36.7) 527 173 32.8 355 355 355 (35.2) 5.7 16.7 16.7 (35.2) CY2010 CY2011* CY2012E CY2013E 6,287 0.8 6,203 2,239 2,563 490 911 84 (84.1) 1.3 52 32 (93.3) 0.5 17 86 85.3 100 (81.0) 100 37 36.9 63 63 63 (82.2) 1.0 3.0 3.0 (82.2) 7,452 18.5 7,090 2,226 3,255 587 1,022 362 344.3 4.9 80 282 780.0 3.8 31 16 6.0 268 167.4 268 83 31.1 185 185 185 192.1 2.5 8.7 8.7 192.1 8,926 19.8 8,243 3,004 3,570 768 901 683 83.4 7.6 106 577 104.1 6.5 27 35 6.0 585 118.2 585 190 32.5 395 395 395 113.7 4.4 18.6 18.6 113.7 10,220 14.5 9,457 3,510 4,088 818 1,042 762 11.7 7.5 119 643 11.5 6.3 20 35 5.3 658 12.4 658 214 32.5 444 444 444 12.4 4.3 20.9 20.9 12.4

Note: *The company has reported consolidated numbers for CY2011.

February 23, 2012

ABB India | 4QCY2011 Result Update

Balance sheet (Standalone)

Y/E December (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Deferred Tax Asset Current Assets Cash Loans & Advances Inventories Debtors Others Current liabilities Net Current Assets Total Assets 879 206 673 116 17 4,749 524 318 729 2,858 320 3,132 1,617 2,424 998 232 766 58 17 5 4,926 587 354 698 2,926 361 3,348 1,579 2,424 1,598 311 1,287 50 17 5 5,594 172 224 1,054 3,777 367 4,393 1,201 2,559 1,798 417 1,380 50 17 5 6,139 246 410 959 4,035 489 4,687 1,452 2,904 2,023 537 1,486 50 17 5 6,746 316 467 1,063 4,340 560 5,055 1,691 3,249 42 2,381 2,424 2,424 42 2,381 2,424 2,424 42 2,516 2,559 2,559 42 2,862 2,904 2,904 42 3,206 3,249 3,249 CY2009 CY2010 CY2011E CY2012E CY2013E

February 23, 2012

ABB India | 4QCY2011 Result Update

Cash flow statement (Standalone)

Y/E December (` cr) Profit before tax Depreciation (Inc)/Dec in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec.in Fixed Assets (Inc.)/Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances CY2009 527 49 (63) (73) (173) 268 (163) 44 73 (46) (50) 4 (50) 176 348 524 CY2010 CY2011E CY2012E CY2013E 100 52 102 (86) (37) 131 (104) 0.1 86 (19) (50) 0.3 (50) 63 524 587 268 80 (37) (16) (83) 211 (592) 0.1 16 (576) (50) (50) (415) 587 172 585 106 (177) (35) (190) 288 (200) 35 (165) (50) (50) 74 172 246 658 119 (169) (35) (214) 359 (225) 35 (190) (99) (99) 70 246 316

February 23, 2012

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ABB India | 4QCY2011 Result Update

Key ratios
Y/E December Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets OB/Sales Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis (%) EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (Pre-tax) RoIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) RoCE (Pre-tax) Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover (Gross Block) (X) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to Equity Net debt to EBITDA Interest Coverage (0.2) (1.0) 19.9 (0.2) (7.2) 1.8 (0.1) (0.5) 9.2 (0.1) (0.4) 21.5 (0.1) (0.4) 31.5 7.6 40 171 197 62 6.7 41 168 181 61 5.8 43 164 190 49 5.3 41 160 189 46 5.3 36 150 160 46 21.2 28.7 15.7 1.3 1.8 2.6 11.4 13.9 7.4 21.1 23.5 14.5 20.9 23.6 14.4 7.7 67.2 3.5 26.6 17.9 (0.2) 14.1 0.5 63.1 3.4 1.7 1.1 (0.2) 0.8 3.8 68.9 3.6 13.5 9.3 21.1 (0.2) 7.8 6.5 67.5 3.6 23.0 15.5 (0.1) 14.2 6.3 67.5 3.7 23.1 15.6 (0.1) 14.1 16.7 16.7 19.0 2.0 113.7 3.0 3.0 5.4 2.0 114.4 8.7 8.7 12.5 2.0 120.8 18.6 18.6 23.6 2.0 137.0 20.9 20.9 26.6 4.0 153.3 52.3 46.0 7.7 0.2 2.9 34.2 7.5 1.4 293.5 161.6 7.7 0.2 2.9 214.4 7.4 1.3 100.5 70.2 7.3 0.2 2.5 50.7 7.2 1.1 47.0 37.1 6.4 0.2 2.1 26.8 6.3 1.2 41.8 33.0 5.7 0.5 1.8 23.9 5.6 1.1 CY2009 CY2010 CY2011 CY2012E CY2013E

February 23, 2012

11

ABB India | 4QCY2011 Result Update

Research Team Tel: 022 3935 7600

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

ABB India No No No No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

February 23, 2012

12