SIEMENS 2017-18 Annual Report Analysis

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SIEMENS 2017-18 Annual Report Analysis
Tue, 24 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 15.6% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 25.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.4% in FY as against 9.5% in FY.
  • Depreciation charges decreased by 0.1% and finance costs increased by 3.8% YoY, respectively.
  • Other income grew by 10.6% YoY.
  • Net profit for the year declined by 20.7% YoY.
  • Net profit margins during the year declined from 10.0% in FY to 6.9% in FY.

SIEMENS Income Statement 2017-18

No. of Mths Year Ending 12 Sep-17* 12 Sep-18* % Change
Net Sales Rs m 110,647 127,953 15.6%
Other income Rs m 2,532 2,801 10.6%
Total Revenues Rs m 113,179 130,754 15.5%
Gross profit Rs m 10,540 13,273 25.9%
Depreciation Rs m 1,978 1,977 -0.1%
Interest Rs m 79 82 3.8%
Profit before tax Rs m 11,015 14,015 27.2%
Tax Rs m 5,323 5,003 -6.0%
Profit after tax Rs m 11,367 9,012 -20.7%
Gross profit margin % 9.5 10.4
Effective tax rate % 48.3 35.7
Net profit margin % 10.0 6.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



SIEMENS Balance Sheet Analysis

  • The company's current liabilities during FY stood at Rs 58 billion as compared to Rs 52 billion in FY, thereby witnessing an increase of 11.1%.
  • Current assets rose 7% and stood at Rs 110 billion, while fixed assets fell 4% and stood at Rs 13 billion in FY.
  • Overall, the total assets and liabilities for FY stood at Rs 143 billion as against Rs 131 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 51,853 57,615 11.1
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 131,382 143,363 9.1
 
Current assets Rs m 102,837 110,179 7.1
Fixed Assets Rs m 13,664 13,079 -4.3
Total Assets Rs m 131,382 143,363 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 -767 million 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 -3 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 -767 -
Cash Flow from Financing Activities Rs m -2,852 -3,053 -
Net Cash Flow Rs m 16,096 -2,814 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 1,478.7, stands at 56.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 3.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 47.9 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 310.7 359.3
TTM Earnings per share Rs 31.9 25.3
Diluted earnings per share Rs 31.9 25.3
Price to Cash Flow x 39.5 47.9
TTM P/E ratio x 56.3 56.3
Price / Book Value ratio x 5.7 4.7
Market Cap Rs m 526,577 526,577
Dividends per share (Unadj.) Rs 7.0 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for SIEMENS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY, from 2.0x 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 improved and stood at 171.9x during FY, from 140.4x 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 17.0% during FY, from 21.8% 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 6.3% during FY, from 8.7% 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 2.0 1.9
Debtors’ Days Days 113 105
Interest coverage x 140.4 171.9
Debt to equity ratio x 0.0 0.0
Return on assets % 8.7 6.3
Return on equity % 14.8 10.9
Return on capital employed % 21.8 17.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 up from Rs 918.3 to Rs 1,478.7, registering a gain of Rs 560.4 or around 61.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 19,042.4 (down 1.1%). Over the last one year it has moved up from 17,758.3 to 19,042.4, a gain of 1,284 points (up 7.2%).

Overall, the S&P BSE SENSEX is up 8.0% over the year.

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

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