SIEMENS 2022-23 Annual Report Analysis

Sat, 30 Sep

SIEMENS has announced its results for the year ended September 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SIEMENS Income Statement Analysis

• Operating income during the year rose 21.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 38.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY as against 11.0% in FY.
• Depreciation charges increased by 1.2% and finance costs decreased by 7.6% YoY, respectively.
• Other income grew by 77.1% YoY.
• Net profit for the year grew by 55.5% YoY.
• Net profit margins during the year grew from 7.8% in FY to 10.0% in FY.

SIEMENS Income Statement 2022-23

No. of Mths Year Ending		12 Sep-22*	12 Sep-23*	% Change
Net Sales	Rs m	161,378	195,538	21.2%
Other income	Rs m	3,177	5,625	77.1%
Total Revenues	Rs m	164,555	201,163	22.2%
Gross profit	Rs m	17,786	24,604	38.3%
Depreciation	Rs m	3,171	3,208	1.2%
Interest	Rs m	675	624	-7.6%
Profit before tax	Rs m	17,117	26,397	54.2%
Tax	Rs m	4,498	6,778	50.7%
Profit after tax	Rs m	12,619	19,619	55.5%
Gross profit margin	%	11.0	12.6
Effective tax rate	%	26.3	25.7
Net profit margin	%	7.8	10.0

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SIEMENS Balance Sheet Analysis

• The company's current liabilities during FY stood at Rs 103 billion as compared to Rs 94 billion in FY, thereby witnessing an increase of 9.5%.
• Current assets rose 16% and stood at Rs 194 billion, while fixed assets rose 1% and stood at Rs 110 billion in FY.
• Overall, the total assets and liabilities for FY stood at Rs 304 billion as against Rs 276 billion during FY, thereby witnessing a growth of 10%.

SIEMENS Balance Sheet as on September 2023

No. of Mths Year Ending		12 Sep-22*	12 Sep-23*	% Change
Networth	Rs m	116,102	130,871	12.7
Current Liabilities	Rs m	94,047	102,997	9.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	275,818	304,064	10.2
Current assets	Rs m	166,752	194,104	16.4
Fixed Assets	Rs m	108,874	109,589	0.7
Total Assets	Rs m	275,818	304,064	10.2

SIEMENS Cash Flow Statement Analysis

• SIEMENS's cash flow from operating activities (CFO) during FY stood at Rs 14 billion, an improvement of 43.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY stood at Rs -8 billion, an improvement of 2,049.6% 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 2 billion from the Rs 6 billion net cash flows seen during FY.

SIEMENS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Sep-22	Sep-23
Cash Flow from Operating Activities	Rs m	9,785	14,000	43.1%
Cash Flow from Investing Activities	Rs m	-353	-7,588	-
Cash Flow from Financing Activities	Rs m	-3,922	-4,499	-
Net Cash Flow	Rs m	5,522	1,911	-65.4%

Current Valuations for SIEMENS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.1, an improvement from the EPS of Rs 35.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,674.2, stands at 66.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.0 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 52.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Sep-22*	12 Sep-23*
Sales per share (Unadj.)	Rs	453.2	549.1
TTM Earnings per share	Rs	35.4	55.1
Diluted earnings per share	Rs	35.4	55.1
Price to Cash Flow	x	62.5	52.7
TTM P/E ratio	x	78.2	66.7
Price / Book Value ratio	x	7.9	9.2
Market Cap	Rs m	918,781	1,203,348
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for SIEMENS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY, from 1.8x 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 43.3x during FY, from 26.4x 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 improved and stood at 15.0% during FY, from 10.9% 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 20.6% during FY, from 15.3% 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 6.7% during FY, from 4.8% 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-22*	12 Sep-23*
Current ratio	x	1.8	1.9
Debtors’ Days	Days	86	88
Interest coverage	x	26.4	43.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.8	6.7
Return on equity	%	10.9	15.0
Return on capital employed	%	15.3	20.6

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 2,368.7 to Rs 3,326.4, registering a gain of Rs 957.7 or around 40.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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