Siemens India shares tumble 3% today, extending losses for the fifth straight day; here’s why

Technology company Siemens Limited shares dropped nearly 3% on Monday, December 23, extending the fall to the fifth day in a row, following weak management commentary.

The stock tanked 10% on Friday after company management lowered expectations on HVDC orders in India in a recent analyst call.

Experts also lowered expectations on its stock performance and earnings per share, which hit the sentiment.

Siemens Ltd shares opened lower and fell up to 2.8% to hit a low of ₹6,676.5 per piece on the NSE in morning deals. More than 1.99 lakh shares traded on the exchange.

Siemens’ management stated in an analyst call that the company expects a slowdown in railway order flow and private capex (capital expenditure). It also sees the possibility of a higher share going to IR factories.

The company said that though private capex remains steady in certain high-growth areas, such as semiconductors and batteries, it has been sluggish in traditional technologies.

Experts also expressed concerns about the company’s expectations for a slowdown in HVDC orders. The orders may be slower as India prefers LCC tech, while Siemens plans to be in the VSC tech globally.

The LCC (Line Commutated Converter) and VSC (Voltage Source Converter) technologies are both used in High Voltage Direct Current (HVDC) power transmission.

Siemens, in its investor presentation, highlighted that government spending on infrastructure continued in the first half of the fiscal year, albeit at a slower pace, but was expected to pick up in H2.

The company said private sector capex was mainly in new-age technologies, such as semiconductors, Batteries, Solar Photovoltaics, and Electric Vehicles.

Engineering and automation company Siemens reported a 45.4% rise in net profit to ₹830.7 crore for the fourth quarter ended September 30, 2024, compared to the year-ago period.

Revenue from operations rose by 11.2% year-on-year to ₹6,461 crore in the September quarter against ₹5,807.7 crore in the year-ago period.

In the past five sessions, the stock has tumbled over 14%. It dropped more than 10% to ₹6,821.8 apiece on the NSE, marking the sharpest intraday fall in the last six months.

The stock was trading 2.41% lower at ₹6,703.3 apiece on the NSE at 10:06 am.