Siemens Q1 earnings: Net profit surges five-fold to ₹2,143 crore on one-time gain, revenue rises 15%

Siemens, the country's leading heavy electrical equipment maker, on Tuesday, August 11, reported a net profit (attributable to the owners of the company) of ₹2,143 crore in the first quarter of the current financial year, marking an increase of 407% or five times from ₹423 crore in the same period last year. The boost in profit came in account of one-time gain of ₹2,099 crore as it completed sale of its LVM business.

After adjusting for one-time gain, the net profit in June quarter stood at ₹343 crore. The profitability in Q1 was impacted due to volatility in commodity prices, foreign exchange and increase in material costs, Siemens said.

Its revenue from operations in April-June period came in at ₹4,714 crore, up 15% from ₹4,108 crore in the same period last year.

The company's revenue from smart infrastructure business rose 11% to ₹2,632.5 crore, revenue from mobility business advanced 13% to ₹933 crore and revenue from digital industries business jumped 25% to ₹1,144 crore.

Siemens reported weak operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 17% to ₹431 crore and its EBITDA margin contracted by 340 basis points to 9.15%.

Siemens said that its order Income increased by 16.5% in first quarter to ₹6,328 crore from ₹5,431 crore.

"The corresponding quarter of the previous year included a large order for signalling and train control technologies for the Mumbai-Ahmedabad High Speed Rail corridor. Excluding the impact of this order, Order Income growth was 43.9%. Digital Industries received orders for automation solutions for solar cell manufacturing and across metals, electronics, pharmaceuticals and water market segments. Smart Infrastructure continues to show very robust growth across grid modernization projects, data centres and commercial real estate. The Mobility business showed good growth in the quarter in the Rolling Stock business," Siemens said.

“Domestic demand continues to be strong during the quarter, with ordering by both the private and public sectors. This was reflected in the Company’s strong New Order growth during the quarter, primarily driven by Smart Infrastructure business. Our focus continues to be on profitable growth across all our businesses,” said Sunil Mathur, managing director and chief executive officer, Siemens.

Siemens shares rose as much as 2.38% from day's lowest level to hit an intraday high of ₹3,995 after its earnings announcement.