Siemens gains after September quarter profit jumps 36% to Rs 534 crore

The share price of Siemens rose nearly a percent in the early trade on November 29 after the company reported a 36 percent jump in net profits in the September quarter.

At 9.15 am, the stock was trading at Rs 3,678 on National Stock Exchange.

On November 28, Siemens Ltd reported a 36 percent year-on-year rise in net profit at Rs 534 crore for the September quarter, mainly on the back of higher revenues.

The company, which follows the October to September fiscal year, reported a net profit of Rs 392 crore a year ago, a company statement said.

It reported a revenue of Rs 5,297 crore in the fourth quarter of the financial year 2023 that ended September 30, a 25 percent increase from the previous fiscal.

The board recommended a dividend of Rs 10 per share for the financial year 2023.

The company’s order backlog stood at Rs 45,518 crore, the statement said. For the year, Siemens Ltd reported an increase of 139 percent in new orders, 21 percent in revenue and 53 percent increase in profit after tax over the previous fiscal.

Also Read: Siemens net jumps 36% in Jul-Sep quarter to Rs 534 crore

The board has also approved an investment of around Rs 416 crore towards capacity addition for power transformers and vacuum interrupters. The expansion in capacities of both these products would enable the company to meet the growing demand both in India and globally.

“The resilient year-on-year performance across all our businesses is representative of the continued growth in capex and digital spending by both public as well as private sectors,” Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd, said in a statement.

Daniel Spindler would quit as the Chief Financial Officer of the company with effect from close of business hours of February 29, 2024, the company said.

The board has recommended the appointment of Wolfgang Wrumnig as executive director and chief financial officer for five years, from March 1, 2024.

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UBS on Siemens

In a post-result report, UBS gave Siemens a “neutral” rating with a target of Rs 3,750 a share. “Siemens reported robust year-on-year growth in Q4 with a 25 percent increase in top-line, 36 percent in EBITDA, and a 50 percent rise in profit. The Q4FY23 results indicated stable overall performance but near-term catalysts are limited,” it said.

The stock has given a return of 3.98 percent over the past six months against Nifty’s 6.94 percent during the period.

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