Siemens Ltd, the Indian subsidiary of German technology giant Siemens AG, reported a 27% year-on-year increase in consolidated net profit for the June quarter, reaching ₹578 crore. Despite the growth, the results fell short of market expectations.
The company’s consolidated revenues grew by 6.8% to ₹5,203.5 crore during the quarter, according to an exchange filing on August 9. Siemens operates on a financial year from October to September. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin rose by nearly 160 basis points to 11.6% in the quarter ended June 30, 2024.
This improvement was largely driven by a decrease in depreciation and amortization expenses, which fell by 13% to ₹458 crore from ₹527.4 crore in the same quarter last year. The energy and smart infrastructure segment showed significant growth, contributing to the overall profit increase for the quarter.
The smart infrastructure segment’s operating margin improved by around 400 basis points to 14.1%, with operating profit jumping nearly 60% to ₹277 crore. Revenues from this segment rose 14.5% to ₹1,970 crore. However, the company’s net profit growth was partially offset by an 18.6% rise in tax expenses, which totaled ₹179.4 crore for the quarter.
Siemens Managing Director and CEO Sunil Mathur attributed the strong performance to a high-quality order backlog, which the company continues to deliver on. Mathur noted robust order inflows in the smart infrastructure, mobility, and energy segments, though the digital industries segment saw weaker demand.
In the mobility segment, the operating margin fell by around 380 basis points to 2.6%, with operating profit dropping 57% to ₹16 crore. Revenue in this segment grew by 6.8% to ₹616.8 crore. Revenues from the digital industries segment increased by 7.7% to ₹964.4 crore, while profit rose by 12.5% to ₹90.8 crore.
The energy business generated ₹1,486.5 crore in revenue and ₹190.3 crore in profit, compared to ₹1,518.1 crore in revenue and ₹158.5 crore in profit during the same period last year. Siemens’ new orders for the quarter stood at ₹6,245 crore, reflecting an 18% increase from the previous year’s ₹5,288 crore. Looking ahead, Mathur expressed confidence in maintaining the current operating margin levels.
