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SIEMENS 2017-18 Annual Report Analysis
Sun, 30 Sep

SIEMENS has announced its results for the year ended September 2018. Let us have a look at the detailed performance review of the company during FY17-18.

SIEMENS Income Statement Analysis

  • Operating income during the year rose 19.3% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 15.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY as against 15.0% in FY.
  • Depreciation charges decreased by 0.1% and finance costs increased by 10.2% YoY, respectively.
  • Other income declined by 4.5% YoY.
  • Net profit for the year declined by 20.7% YoY.
  • Net profit margins during the year declined from 10.6% in FY to 7.0% in FY.

SIEMENS Income Statement 2017-18

No. of Mths Year Ending 12 Sep-17* 12 Sep-18* % Change
Net Sales Rs m 107,260 127,953 19.3%
Other income Rs m 2,934 2,801 -4.5%
Total Revenues Rs m 110,194 130,754 18.7%
Gross profit Rs m 16,057 13,547 -15.6%
Depreciation Rs m 1,978 1,977 -0.1%
Interest Rs m 323 356 10.2%
Profit before tax Rs m 16,690 14,015 -16.0%
Tax Rs m 5,324 5,003 -6.0%
Profit after tax Rs m 11,366 9,012 -20.7%
Gross profit margin % 15.0 10.6
Effective tax rate % 31.9 35.7
Net profit margin % 10.6 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

SIEMENS Balance Sheet Analysis

  • The company's current liabilities during FY down at Rs 66 billion as compared to Rs 73 billion in FY, thereby witnessing an decrease of -10.4%.
  • Current assets fell 4% and stood at Rs 120 billion, while fixed assets rose 37% and stood at Rs 79 billion in FY.
  • Overall, the total assets and liabilities for FY stood at Rs 198 billion as against Rs 182 billion during FY, thereby witnessing a growth of 9%.

SIEMENS Balance Sheet as on September 2018

No. of Mths Year Ending 12 Sep-17* 12 Sep-18* % Change
Networth Rs m 76,906 82,989 7.9
 
Current Liabilities Rs m 73,332 65,706 -10.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 181,656 198,388 9.2
 
Current assets Rs m 124,316 119,810 -3.6
Fixed Assets Rs m 57,340 78,578 37.0
Total Assets Rs m 181,656 198,388 9.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



SIEMENS Cash Flow Statement Analysis

  • SIEMENS's cash flow from operating activities (CFO) during FY stood at Rs 998 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY stood at Rs -3 billion on a YoY basis.
  • Overall, net cash flows for the company during FY stood at Rs -4 billion from the Rs 16 billion net cash flows seen during FY.

SIEMENS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Sep-17 Sep-18
Cash Flow from Operating Activities Rs m 5,734 998 -82.6%
Cash Flow from Investing Activities Rs m 13,224 -1,746 -
Cash Flow from Financing Activities Rs m -2,852 -3,053 -
Net Cash Flow Rs m 16,096 -3,793 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for SIEMENS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.3, an decline from the EPS of Rs 31.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 941.4, stands at 37.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 35.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Sep-17* 12 Sep-18*
Sales per share (Unadj.) Rs 301.2 359.3
TTM Earnings per share Rs 31.9 25.3
Diluted earnings per share Rs 31.9 25.3
Price to Cash Flow x 32.0 35.7
TTM P/E ratio x 37.7 37.5
Price / Book Value ratio x 5.7 4.7
Market Cap Rs m 441,767 392,284
Dividends per share (Unadj.) Rs 7.0 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for SIEMENS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.8x during FY, from 1.7x during FY. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 40.4x during FY, from 52.7x during FY. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 10.9% during FY, from 14.8% during FY. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 17.3% during FY, from 22.1% during FY. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 4.7% during FY, from 6.4% during FY. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Sep-17* 12 Sep-18*
Current ratio x 1.7 1.8
Debtors’ Days Days 117 105
Interest coverage x 52.7 40.4
Debt to equity ratio x 0.0 0.0
Return on assets % 6.4 4.7
Return on equity % 14.8 10.9
Return on capital employed % 22.1 17.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how SIEMENS has performed over the last 5 years, please visit here.

SIEMENS Share Price Performance

Over the last one year, SIEMENS share price has moved down from Rs 1,257.8 to Rs 1,073.1, registering a loss of Rs 184.8 or around 14.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for SIEMENS and quarterly results for SIEMENS)

Annual Report FAQs

What is the current share price of SIEMENS?

SIEMENS currently trades at Rs 5,375.4 per share. You can check out the latest share price performance of SIEMENS here...

What was the revenue of SIEMENS in FY? How does it compare to earlier years?

The revenues of SIEMENS stood at Rs 130,754 m in FY, which was up 18.7% compared to Rs 110,194 m reported in FY.

SIEMENS' revenue has grown from Rs 104,904 m in FY to Rs 130,754 m in FY.

Over the past 5 years, the revenue of SIEMENS has grown at a CAGR of 5.7%.

What was the net profit of SIEMENS in FY? How does it compare to earlier years?

The net profit of SIEMENS stood at Rs 9,012 m in FY, which was down -20.7% compared to Rs 11,366 m reported in FY.

This compares to a net profit of Rs 29,137 m in FY and a net profit of Rs 11,744 m in FY.

Over the past 5 years, SIEMENS net profit has grown at a CAGR of 10.6%.

What does the cash flow statement of SIEMENS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of SIEMENS reveals:

  • Cash flow from operations decreased in FY and stood at Rs 998 m as compared to Rs 5,734 m in FY.
  • Cash flow from investments decreased in FY and stood at Rs -1,746 m as compared to Rs 13,224 m in FY.
  • Cash flow from financial activity decreased in FY and stood at Rs -3,053 m as compared to Rs -2,852 m in FY.

Here's the cash flow statement of SIEMENS for the past 5 years.

(Rs m)FYFYFYFYFY
From Operations6,0785,7445,1285,734998
From Investments1,3036,4482,37313,224-1,746
From Financial Activity-2,204-2,448-16,143-2,852-3,053
Net Cashflow5,1729,751-8,64116,096-3,793

What does the Key Ratio analysis of SIEMENS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of SIEMENS reveals:

  • Operating profit margins witnessed a fall and stood at 10.6% in FY as against 15.0% in FY.
  • Net profit margins declined from 10.6% in FY to 7.0% in FY.
  • Debt to Equity ratio for FY stood at 0.0 as compared to 0.0 in FY.

Here's the ratio/financial analysis of SIEMENS for the past 5 years.

 FYFYFYFYFY
Operating Profit Margin (%)9.617.438.815.010.6
Net Profit Margin (%)5.811.528.010.67.0
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of SIEMENS

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