Siemens shares surge 8.7% on strong Q4 results, plan to demerge energy business

Shares of technology major Siemens peaked by up to 8.7% in the early trading hours on Wednesday, as the market seemed impressed by the strong March quarter results, along with the plan to demerge and list energy business, as announced a day earlier.

The stock pared some of the gains thereafter, and was trading 6.2% higher at ₹7,076 apiece at 10:22 am.

The company's market capitalisation reached ₹2.52 lakh crore, on account of the fresh surge in its share price.

Siemens' strong Q4 results

Siemens, the Indian arm of Germany-headquartered Siemens AG, posted a 74% year-on-year rise in consolidated net profit to ₹896 crore in Q4FY24.

The net profit in the fourth quarter of the previous fiscal year was ₹516 crore.

The consolidated revenue from operations in Q4FY24 came in at ₹5,248 crore, up 19% as compared to ₹4,400 crore in the year-ago period.

Energy biz to be demerged, listed

Siemens announced that its energy business in India would be demerged, and listed as a separate entity on the bourses.

The demerged entity – Siemens Energy India Ltd – is currently a wholly-owned subsidiary of Siemens Ltd. After the listing, it will mirror the shareholding pattern of the parent entity. This means that the shareholders will be issued one share of Siemens Energy for every one share held in Siemens Ltd.