Siemens: Positive signals - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Siemens: Positive signals

Nov 23, 2001

Siemens India has reported a 4% YoY growth in net sales during its year ended September 30, 2001. The company's net profit however, has declined by over 18%, as a result of higher taxes and restructuring costs (extraordinary items).

(Rs m)FY01FY02Change
Net Sales11,15711,5733.7%
Other Income57277836.1%
Expenditure10,57410,9623.7%
Operating Profit (EBDIT)5836114.7%
Operating Profit Margin (%)5.2%5.3% 
Interest 4917-65.0%
Depreciation315295-6.5%
Profit before Tax7911,07836.2%
Extraordinary items155-113 
Tax106277160.9%
Profit after Tax/(Loss)840687-18.2%
Net profit margin (%)7.5%5.9% 
No. of Shares 35.533.6 
Diluted Earnings per share*25.020.4 
P/E Ratio 9.6 
*(annualised)   

Siemens India is a 51% subsidiary of German engineering behemoth Siemens AG. In India, Siemens manufactures automation systems, components, medical equipment, motors and drivers, power generating equipment and switchgears. It derives 40-45% of revenues from standard products (automation, ancillary equipment). The balance is split between power projects, industrial projects and switchgears.

The major contributors to the company's turnover growth were transmission & distribution division, automation and the the medical equipment divisions. Infact, Siemens gained market share in the Medical equipment business. Excluding the effect of the extraordinary items (restructuring cost for FY02 - Rs 113 m) as well as the deffered tax of Rs 41 m, Siemens net profit has grown 23% YoY to Rs 841 m, which is very good.

Lower interest burden was a result of the company's debt pruning exercise. A decline in depreciation provision can also be attributed to Siemens' restructuring efforts. Another encouraging sign is the company's more or less stable order book. Siemens received new orders worth Rs 10.8 bn in FY02 as compared to Rs 12 bn worth of orders in FY01 (decline of 10% YoY). However, Siemens management clarifies that it had received a very large order of Rs 1.7 bn in FY01 for high voltage transmission project. Excluding this large order, the new orders have grown by 5% YoY in FY02.

The company continues its bid to improve operating efficiencies. The company has reduced its workforce by 4% to 4,167 employees in FY02. Siemens has also bought back 1.86 m shares at an average price of Rs 197.6 per share, under the recently approved buyback plan. This would also improve the company's earnings per share going forward.

At the current price of Rs 196 the stock trades at nearly 10x its FY02 earnings. The company's FY02 performance has shown promise but unless the steadiness in its performance continues its valuations are likely to remain rangebound.

Equitymaster requests your view! Post a comment on "Siemens: Positive signals". Click here!

  

More Views on News

SIEMENS 2019-20 Annual Report Analysis (Annual Result Update)

Oct 25, 2021 | Updated on Oct 25, 2021

Here's an analysis of the annual report of SIEMENS for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of SIEMENS. Also includes updates on the valuation of SIEMENS.

SIEMENS Announces Quarterly Results (1QFY22); Net Profit Up 985.2% (Quarterly Result Update)

Aug 12, 2021 | Updated on Aug 12, 2021

For the quarter ended June 2021, SIEMENS has posted a net profit of Rs 1 bn (up 985.2% YoY). Sales on the other hand came in at Rs 29 bn (up 140.0% YoY). Read on for a complete analysis of SIEMENS's quarterly results.

Siemens Soars 8% amid Strong Margin Growth. Can the Stock See More Gains? (Views On News)

May 12, 2021

A key highlight of Siemens' March quarter results was its robust operating performance.

Infrastructure Boom Ahead. Here are 3 Ways to Play It... (Views On News)

Aug 24, 2021

India is expected to become the third largest construction market next year. For that, it needs huge investments.

G R Infraprojects Makes a Bumper Listing on Bourses. Big Gains for IPO Investors (Views On News)

Jul 19, 2021

GR Infra shares were subscribed over 100 times in its IPO.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

SIEMENS SHARE PRICE


Dec 9, 2021 03:37 PM

TRACK SIEMENS

  • Track your investment in SIEMENS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

SIEMENS - PERM MAGNETS COMPARISON

COMPARE SIEMENS WITH

MARKET STATS