Siemens stock may dip further on poor results: Antique

Vikram Suryavanshi, analyst, Antique Broking, says that Siemens result disappointed both in terms of revenue and profitability. The energy segment also reported almost 44 percent degrowth on y-o-y basis. Current quarter numbers will definitely impact the stock movement on the lower side. However, investors should take a long-term view on the stock.

Also read: Siemens Q2 disappoints, net falls 82% to Rs 30 cr      Below is the edited transcript of his interview to CNBC-TV18. Q: Siemens numbers disappointed on all accounts. What is your reaction? After looking at these numbers would you be worried about the others in the sector and how they would report this quarter around?
A: Numbers are disappointing both in terms of revenue and profitability. Energy segment reported almost 44 percent degrowth on y-o-y basis. Overall, 22 percent decline in revenue is also disappointment. The company has reported a very dismal profit against our expectation of around Rs 127 crore. There is an impact of Rs 90 crore because they have revised estimates for revenue and cost for certain projects. If we take this Rs 90 crore impact then the numbers are not bad as they look. Margins are in the range of 5-6 percent.    Q: What would you do with Siemens stock now?
A: Stock will be impacted due to these poor numbers for a while. One should look at Siemens stock with a slightly long-term horizon with the kind of technology and product they have in domestic market. We believe that the stock will reasonably hold onto the current levels despite poor numbers.  Q: What your EPS estimates would be now considering the profitability that you saw this quarter for Siemens?
A: There could be some minor variation in this quarter, but full year we were earlier expecting EPS of around Rs 13 for FY13 and around Rs 20 for FY14.