Siemens Q1 PAT seen up 141% at Rs 127.9 cr: Motilal Oswal

Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the capital goods sector. The brokerage house expects Siemens to report a 326.4 percent growth quarter-on-quarter (growth of 141.3 percent year-on-year) in net profit at Rs 127.9 crore.

Revenues are expected to decrease by 1.2 percent Q-o-Q (down 3.3 percent Y-o-Y) to Rs 2,919.2 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 215.8 percent Q-o-Q (up 83.3 percent Y-o-Y) to Rs 238 crore.

Motilal Oswal report on Siemens

We expect revenue growth to remain muted, impacted by delays in offtake by customers, sluggish industrial capex and depletion of order
book (BTB at just 1.1x). We expect, SIEM's early and mid-cycle products to recover in the medium term, led by key policy reforms announced by the government in various sectors.

We expect moderate recovery in orders during CY13, driven by Power, Building Technology and Healthcare segments.

Profit margins have been impacted by cost escalations. We expect margins to remain under pressure due to pricing pressure and slower
execution in the Power business , though softening commodity prices should support margins. Weak INR would also have a negative impact on profit margins, particularly in healthcare.