The company is expanding its facilities across GIS, metro and transformers to meet domestic and export demand.
 "Stock market praises Siemens' strong performance in the second quarter")
premium
Devansh Dutta
Siemens achieved strong profit margins and also reported strong other revenues that exceeded consensus in the second quarter of FY2014 (the company’s fiscal year ends on September 30). Additionally, the company has split its energy sector and he has chosen to transfer his shares on a one-for-one basis in the new split company, which will be listed by the end of this year (CY25).
Reported revenue and profit after tax (PAT) growth was 18% year-on-year (YoY) and 70% (YoY), respectively. The profit margin expansion was due to an improved revenue mix, price increases, and productivity measures. The outlook looks good given the strong demand scenario.
Click here to follow our WhatsApp channel
Order inflow was Rs 5.18 billion, down 13% from the previous quarter due to delays in final decisions due to the election. However, the research pipeline is strong. Demand for transmissions, data centers, EVs, railways, semiconductors, electronics, and hydrogen is increasing. The capital expenditure planned to tap domestic and export demand is Rs 50 billion.
The announced capital expenditure includes Rs 333 million in Goa for GIS (Gas Insulated Switchgear) and Clean Air GIS technology for industries such as data centres, metro rail, oil and gas, steel and T&D. It is. In Aurangabad, we are investing Rs 186 million in a new metro car manufacturing facility. Together with these and previous capital investments in power transformers and vacuum circuit breakers, the cumulative capital expenditure will be over Rs 1,000 crore.
Demand is being driven by private capex from government capex, PLI schemes, data centres, renewable energy spending and semiconductors. While government projects have been postponed during his second quarter of 2024, demand for transmissions has increased for which the company is considering his HVDC projects.
Energy entity Siemens Energy India (SEIL) is expected to be listed by the end of 2025 with a 1:1 share allotment with mirror holdings. Both companies will develop separate strategies. SEIL will gain technology access from its parent company, Siemens AG. As of FY23, energy order book was Rs 9,700 billion and revenue was Rs 6,000 billion.
Siemens is expanding its facilities across GIS, metro and transformers to meet domestic and export demand. In smart infrastructure, GIS expansion initially addresses export demand. C&S Electric’s subsidiary (it’s a division) already has significant exports. When it comes to mobility, metro and bus factories will emerge as global export hubs. The company also plans to construct a power substation facility. If the export volume increases, the profit margin should also improve.
The company (and its Indian group companies) should be able to maintain a CAGR of over 20% from FY24 to FY2026. There are big opportunities in railways, T&D, and data centers. As always, the company remains highly valued, and strong results translated into improved earnings.
Subscribe to Insights
Featured articles on business-standard.com are available only to premium subscribers.
If you are already a BS Premium subscriber, please log in now.
monthly₹9/day
₹249
will be updated automatically
select
smart annual₹5/day
₹1699₹1999
Opt for automatic renewal and save Rs. 300 will be updated automatically
select
select
