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Siemens Ltd for Q4FY24

ICICIdirect Research 20 Dec 2024 DISCLAIMER

The company expects government capex to pick-up January 2025 onwards. Private capex not picking-up as much as expected. Private capex in only strong in new age industries semiconductor, batteries, solar PV entities (all the above is served by the digital industries segment of the company)., chemicals and pharma whereas food and beverages is slow. In the smart infrastructure, data center and commercial buildings are driving demand, utilities under the RDSS scheme beginning to order. In the railways segment, electrification, Vande Bharat and Metros promise ordering opportunity.

The company is investing Rs 1100 crore over the next two years mainly on the enhancing the capacity of transformers and other transmission segment products. Company not participating in HVDC tenders with LCC technology, it will participate in VSC technology tenders.
Siemens Ltd to be demerged in to Siemens Energy and Siemens Ltd and plan to list Siemens Energy by CY25.

Siemens Energy has OB of ₹10,050 crore (~21% of pre-merger entity), Revenue of ₹6,280 crore (31% of Pre-demerger entity), EBITDA margin of 15.7% and PAT margin of 11.3% in FY24.

Siemens Ltd. received orders worth ₹23,560 crore in FY24 up 13.8% YoY (excluding 9000 HP order worth ₹ 26,300 crore in FY23). Digital Industry (15% of OI)/Smart Infrastructure (32%) / Mobility (14%)/ Energy (39%) witnessed order inflow growth of (-10.6%) / 11.6%/ 21% (excl 9K HP Loco order)/ 30% respectively. The order book stood at ~₹48,260 crore in FY24.

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