Siemens Q2 PAT seen down 6% at Rs 261 cr

Siemens, a subsidiary of Germany engineering company is expected to report a fall of 6% year-on-year in its profit after tax of Rs 261 crore for the second quarter of FY12, according to CNBC-TV18 poll. The company's year ends in September.

EBITDA too is likely to decline 7% to Rs 414 crore in the January-March quarter of 2012 versus Rs 445 crore in the corresponding quarter of last fiscal. Operating profit margin is seen falling at 12.72% versus 14.27% during the same period.

However, total income is expected to increase just 4% to Rs 3,256 crore from Rs 3,118 crore year-on-year.

In the first six months of the year 2011-12, analysts on average expect the company to report degrowth of 36% year-on-year in its net profit of Rs 331 crore and 34% in EBITDA of Rs 537 crore.

Total income too is likely to fall 1% to Rs 5,653 crore from Rs 5,698 crore year-on-year. Operating profit margin is seen falling by 477 basis points at 9.51% in the first half year of FY12 versus 14.28% in a year ago period.

Siemens is executing a large project in Qatar valued at Rs 3000 crore, which is driving the T&D division revenue. Company is also tapping other MENA markets in order to boost order intake in the coming quarters.

Order intake in the first quarter of FY12 declined 29% YoY to Rs 2800 crore.

Rising commodity prices and pricing pressure in the power business will impact margins. Margins have also been impacted in the last few quarters due to project specific cost escalations.

Key factors to watch for –
-Margin trend in the industrial solutions and power transmission biz
-Order inflows from the ME, particularly Qatar