SIEMENS 2020-21 Annual Report Analysis

Thu, 30 Sep

SIEMENS has announced its results for the year ended September 2021. Let us have a look at the detailed performance review of the company during FY20-21.

SIEMENS Income Statement Analysis

• Operating income during the year rose 29.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.4% in FY as against 9.9% in FY.
• Depreciation charges increased by 10.2% and finance costs decreased by 12.4% YoY, respectively.
• Other income declined by 6.8% YoY.
• Net profit for the year grew by 41.9% YoY.
• Net profit margins during the year grew from 7.2% in FY to 7.9% in FY.

SIEMENS Income Statement 2020-21

No. of Mths Year Ending		12 Sep-20*	12 Sep-21*	% Change
Net Sales	Rs m	106,178	137,806	29.8%
Other income	Rs m	3,151	2,936	-6.8%
Total Revenues	Rs m	109,329	140,742	28.7%
Gross profit	Rs m	10,535	15,656	48.6%
Depreciation	Rs m	2,726	3,005	10.2%
Interest	Rs m	604	529	-12.4%
Profit before tax	Rs m	10,356	15,058	45.4%
Tax	Rs m	2,670	4,154	55.6%
Profit after tax	Rs m	7,686	10,904	41.9%
Gross profit margin	%	9.9	11.4
Effective tax rate	%	25.8	27.6
Net profit margin	%	7.2	7.9

Don't Miss: Best Chance to Access Midcap Stocks Research at 80% OFF

SIEMENS Balance Sheet Analysis

• The company's current liabilities during FY stood at Rs 81 billion as compared to Rs 70 billion in FY, thereby witnessing an increase of 15.2%.
• Current assets rose 4% and stood at Rs 145 billion, while fixed assets rose 26% and stood at Rs 105 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 250 billion as against Rs 222 billion during FY, thereby witnessing a growth of 12%.

SIEMENS Balance Sheet as on September 2021

No. of Mths Year Ending		12 Sep-20*	12 Sep-21*	% Change
Networth	Rs m	94,920	103,490	9.0
Current Liabilities	Rs m	70,307	81,016	15.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	221,857	249,571	12.5
Current assets	Rs m	138,879	144,693	4.2
Fixed Assets	Rs m	82,978	104,878	26.4
Total Assets	Rs m	221,857	249,571	12.5

SIEMENS Cash Flow Statement Analysis

• SIEMENS's cash flow from operating activities (CFO) during FY stood at Rs 14 billion, an improvement of 97.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -24 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY stood at Rs -15 billion from the Rs 12 billion net cash flows seen during FY.

SIEMENS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Sep-20	Sep-21
Cash Flow from Operating Activities	Rs m	7,197	14,221	97.6%
Cash Flow from Investing Activities	Rs m	8,709	-23,893	-
Cash Flow from Financing Activities	Rs m	-3,860	-5,018	-
Net Cash Flow	Rs m	12,049	-14,690	-

Current Valuations for SIEMENS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.6, an improvement from the EPS of Rs 21.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,127.6, stands at 72.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 5.5 times.
• The company's price to cash flow (P/CF) ratio stood at 45.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Sep-20*	12 Sep-21*
Sales per share (Unadj.)	Rs	298.2	387.0
TTM Earnings per share	Rs	21.6	30.6
Diluted earnings per share	Rs	21.6	30.6
Price to Cash Flow	x	43.3	45.2
TTM P/E ratio	x	57.0	72.4
Price / Book Value ratio	x	5.0	6.1
Market Cap	Rs m	474,281	629,327
Dividends per share (Unadj.)	Rs	7.0	8.0

Ratio Analysis for SIEMENS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x 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 29.5x during FY, from 18.1x 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 improved and stood at 10.5% during FY, from 8.1% 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 improved and stood at 15.1% during FY, from 11.5% 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 improved and stood at 4.6% during FY, from 3.7% 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-20*	12 Sep-21*
Current ratio	x	2.0	1.8
Debtors’ Days	Days	108	98
Interest coverage	x	18.1	29.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	4.6
Return on equity	%	8.1	10.5
Return on capital employed	%	11.5	15.1

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 1,111.6 to Rs 1,844.1, registering a gain of Rs 732.6 or around 65.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Read: Latest Annual Report Analysis of SIEMENS