Siemens Ltd, the Indian subsidiary of German technology conglomerate Siemens AG, reported a substantial 70% year-on-year increase in consolidated net profit, reaching Rs 803 crore for the March quarter.
In an exchange filing on May 14, Siemens disclosed that consolidated revenues surged by 18.4% to Rs 5,750 crore. Additionally, the company announced plans to invest Rs 519 crore to establish a new metro train manufacturing facility in Aurangabad and expand the capacity of its gas insulated switchgear factory in Goa.
Further, Siemens India’s board approved the demerger of its energy business into a separate legal entity, Siemens Energy India Ltd. According to the proposed scheme, shareholders of Siemens Ltd will receive one share of Siemens Energy India Ltd for every share of Siemens Ltd. The newly formed entity will subsequently be listed on both the BSE Limited and National Stock Exchange of India Limited.
For the quarter ended March 31, 2024, Siemens achieved a consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 20.9%, marking a significant rise of nearly 570 basis points. This increase in operating margin was primarily attributed to the decline in raw material prices during the quarter, with raw material costs falling by 9%.
However, the rise in net profit was tempered by a 61% increase in tax outflow, amounting to Rs 285 crore during the quarter.
The operating margins of Siemens’ various segments witnessed improvements, particularly in the energy and digital industries sectors. The smart infrastructure segment saw its operating margin increase by approximately 300 basis points to 14.3%, while the mobility segment observed a 50 basis points rise to 9.2%.
Revenue from the digital industries vertical climbed by 16% to Rs 1,041.9 crore, with a corresponding profit surge of 77.6% to Rs 172.1 crore. The energy business also recorded significant revenue and profit figures, with revenue reaching Rs 1,637.5 crore and profit standing at Rs 224.3 crore.
Siemens reported a decrease in new orders, amounting to Rs 5,184 crore, primarily due to a substantial order in the previous year related to the 9000 HP locomotive project.
Sunil Mathur, Managing Director and CEO of Siemens, highlighted that the company’s profit growth stemmed from various factors, including volume and price effects, ongoing productivity enhancements, and gains from property sales and dividends received from subsidiaries.
Siemens is renowned as a technology company focusing on industry, infrastructure, transportation, and the transmission and generation of electrical power.
