Moneycontrol Bureau
On the back of sluggish business environment, electrical and electronics company, Siemens is likely to report 7.4 percent year-on-year decline in sales to Rs 3517 crore for the March quarter. Net profit is also expected to fall 45.8 percent YoY to Rs 165 crore as big ticket orders were hard to come by. What will impact revenue growth
Delays in off take by customers
Sluggish industrial capex
Completion of Qatar / Torrent projects which supported revenue during last year
Lower execution in energy segment mainly due to ---
Completion of large projects
Slow moving orders
Impact on margins
All of last year, co has suffered from cost escalations impacting margins
While softening commodity prices will provide some cushion, overall margins will be impacted due to execution of low margin T&D and industry orders
Pricing pressure in the power business
Weaker execution
Currency Impact
Weaker Re all of last quarter could also negatively impact profit margins as the firm imports around 45 percent raw material
Order Inflows remain sluggish
While in the December quarter order inflows surprised positively at Rs 1,994 crore, new orders still witnessed decline of around 30 percent YoY Key issues to watch out
Project execution would be a key monitor as revenue has been showing a moderating trend, impacted by execution constraints Stabilization in EBITDA margins (have significantly eroded last year) Read This: Siemens bags Rs 104 crore contract in Bangladesh
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