Siemens Ltd., the Indian arm of multinational conglomerate Siemens AG, on February 13 posted a 9.3 percent on-year rise in its consolidated net profit for the quarter ended December 31, 2023, to Rs 5,05.7 crore on the back of a 20 percent on year rise in operating revenues.
During the reporting quarter, Siemens' topline rose 20.2 percent on year to Rs 4,825.2 crore. Siemens follows an October to September financial year and hence classifies the quarter ended December 31, 2023 as Q1.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin fell nearly 170 basis points to 15.8 percent from 17.5 percent in the corresponding period a year ago.
The operating margin of the company's energy and digital industries segment fell significantly during the quarter, contributing to the overall fall in its bottom line for the quarter.
Siemens also saw its tax outgo during the quarter rise nine percent during the quarter to Rs 172.6 crore, which also impacted its net profit for the quarter.
The operating margin of the company's smart infrastructure segment rose around 190 basis points to 10.6 percent as operating profit from the segment rose 48 percent on year and came in at Rs 196.4 crore. Revenues from the segment grew 22 percent to Rs 1,852.3 crore.
Similarly, operating margin of the company's mobility segment rose around 390 basis points to 7.5 percent as operating profit from the segment rose more than three times on year and came in at Rs 49.2 crore. Revenues from the segment grew 72 percent to Rs 659.7 crore.
Revenues from Siemens' digital industries segment also rose 33.3 percent on year to Rs 1,037.9 crore, while profit from the segment fell 37.2 percent on year to Rs 131.3 crore.
Siemens' revenue from its energy business came in at Rs 1,145.4 crore, on a bottom line from the segment of Rs 125.1 crore. In the corresponding quarter last year the segment had reported a topline of Rs 1,160.1 crore and a bottomline of Rs 133.1 crore.
The company's new orders stood at Rs 5,971 crore, a 10 percent increase over the same period last year. The base business has increased by five percent, whereby advance orderings in our short-cycle product businesses still had some adverse impact.
"There was a decline in New Orders in our Digital Industries Automation business on account of destocking following normalization in demand. We expect this to normalize from Q3 onwards. Capex demand across segments, largely driven by Capex spending in Public Infrastructure, continues to be good. Private Capex is also beginning to pick up," Siemens' managing director, and chief executive officer Sunil Mathur said.
Siemens is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power.
As disclosed in November, Siemens AG said it will begin a new share buyback program of up to 6 billion euros over a five-year period.
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