SIEMENS 2019-20 Annual Report Analysis

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SIEMENS 2019-20 Annual Report Analysis
Mon, 25 Oct

SIEMENS has announced its results for the year ended September 2020. Let us have a look at the detailed performance review of the company during FY19-20.

SIEMENS Income Statement Analysis

  • Operating income during the year fell 22.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.9% in FY as against 10.4% in FY.
  • Depreciation charges increased by 24.9% and finance costs increased by 54.5% YoY, respectively.
  • Other income declined by 34.6% YoY.
  • Net profit for the year declined by 30.1% YoY.
  • Net profit margins during the year declined from 7.7% in FY to 7.0% in FY.

SIEMENS Income Statement 2019-20

No. of Mths Year Ending 12 Sep-19* 12 Sep-20* % Change
Net Sales Rs m 137,672 106,178 -22.9%
Other income Rs m 4,820 3,151 -34.6%
Total Revenues Rs m 142,492 109,329 -23.3%
Gross profit Rs m 14,348 10,535 -26.6%
Depreciation Rs m 2,183 2,726 24.9%
Interest Rs m 391 604 54.5%
Profit before tax Rs m 16,594 10,356 -37.6%
Tax Rs m 5,600 2,670 -52.3%
Profit after tax Rs m 10,994 7,686 -30.1%
Gross profit margin % 10.4 9.9
Effective tax rate % 33.7 25.8
Net profit margin % 7.7 7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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SIEMENS Balance Sheet Analysis

  • The company's current liabilities during FY down at Rs 70 billion as compared to Rs 72 billion in FY, thereby witnessing an decrease of -2.7%.
  • Current assets rose 1% and stood at Rs 139 billion, while fixed assets rose 9% and stood at Rs 83 billion in FY.
  • Overall, the total assets and liabilities for FY stood at Rs 222 billion as against Rs 214 billion during FY, thereby witnessing a growth of 4%.

SIEMENS Balance Sheet as on September 2020

No. of Mths Year Ending 12 Sep-19* 12 Sep-20* % Change
Networth Rs m 90,494 94,920 4.9
 
Current Liabilities Rs m 72,291 70,307 -2.7
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 214,309 221,857 3.5
 
Current assets Rs m 137,996 138,879 0.6
Fixed Assets Rs m 76,313 82,978 8.7
Total Assets Rs m 214,309 221,857 3.5
* 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 7 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY stood at Rs 9 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY stood at Rs 12 billion from the Rs -2 billion net cash flows seen during FY.

SIEMENS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Sep-19 Sep-20
Cash Flow from Operating Activities Rs m 12,729 7,197 -43.5%
Cash Flow from Investing Activities Rs m -11,341 8,709 -
Cash Flow from Financing Activities Rs m -3,115 -3,860 -
Net Cash Flow Rs m -1,738 12,049 -
* 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 21.6, an decline from the EPS of Rs 30.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,158.2, stands at 72.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 4.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 73.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Sep-19* 12 Sep-20*
Sales per share (Unadj.) Rs 386.6 298.2
TTM Earnings per share Rs 30.9 21.6
Diluted earnings per share Rs 30.9 21.6
Price to Cash Flow x 58.3 73.8
TTM P/E ratio x 72.2 72.2
Price / Book Value ratio x 4.7 5.0
Market Cap Rs m 768,579 768,579
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 2.0x during FY, from 1.9x 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 18.1x during FY, from 43.4x 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 8.1% during FY, from 12.1% 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 11.5% during FY, from 18.8% 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 3.7% during FY, from 5.3% 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-19* 12 Sep-20*
Current ratio x 1.9 2.0
Debtors’ Days Days 101 108
Interest coverage x 43.4 18.1
Debt to equity ratio x 0.0 0.0
Return on assets % 5.3 3.7
Return on equity % 12.1 8.1
Return on capital employed % 18.8 11.5
* 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 up from Rs 1,278.2 to Rs 2,158.2, registering a gain of Rs 880.0 or around 68.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 26,648.4 (down 0.7%). Over the last one year it has moved up from 14,145.9 to 26,648.4, a gain of 12,502 points (up 88.4%).

Overall, the S&P BSE SENSEX is up 49.8% over the year.

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

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Related Views on News

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 Announces Quarterly Results (1QFY21); Net Profit Down 101.9% (Quarterly Result Update)

Aug 18, 2020 | Updated on Aug 18, 2020

For the quarter ended June 2020, SIEMENS has posted a net profit of Rs 46 m (down 101.9% YoY). Sales on the other hand came in at Rs 13 bn (down 58.7% YoY). Read on for a complete analysis of SIEMENS's quarterly results.

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