Shares of this large company jumped around 8 percent in Wednesday’s trading session after reporting an increase in net profits by 70 percent YoY. In just six months, the stocks have delivered a multibagger return of 104 percent to its shareholders.
With a market capitalization of Rs. 2,51,435 crores, the shares of Siemens Ltd started Wednesday’s trading session on a higher note at Rs. 7,020 compared to its previous close of Rs. 6,660.45. During the trading session, the shares hit a high of Rs. 7.240, gaining around 8 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 7.155 apiece.
Such a bullish movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue increased by 19.16 percent from Rs. 4,825.2 crores during the December quarter to Rs. 5,749.9 crores in the March quarter. In addition, the net profits zoomed by 59 percent from Rs. 505.7 crores to Rs. 802.9 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased by 18.36 percent from Rs. 4,857.8 crores during Q4FY23 to Rs. 5,749.9 crores in Q4FY24. On the other hand, the net profits surged by 70 percent from Rs. 471.8 crores to Rs. 802.9 crores during the same period.
Furthermore, the company also saw improvements in its EBITDA margin, operating margin, and segment-wise operating margins, with notable growth in the energy and digital industries segments.
The company’s new orders stood at Rs 5,184 crores, an 83.4 percent fall from the previous year, when the company had booked orders worth Rs 31,151 crore, including an order of Rs 25,455 crore for the 9000 HP locomotive project.
Despite a slowdown in new orders, Siemens India’s profit growth was attributed to various factors including productivity measures and gains from property sales and dividends.
The Board of Directors of Siemens Limited approved the proposal to demerge its Energy Business into a separate legal entity Siemens Energy India Limited (currently a wholly owned subsidiary of Siemens Limited). Siemens Energy India Limited will be subsequently listed and will mirror the shareholding of Siemens Limited, upon the receipt of requisite approvals.
As per the scheme of arrangement, shareholders of Siemens Limited will receive 1 share of Siemens Energy India Limited for every 1 share of Siemens Limited.
Meanwhile, the board of Siemens India also announced that the company will invest Rs 519 crores to set up a new metro train manufacturing facility in Aurangabad and increase the capacity of its gas-insulated switchgear factory in Goa.
According to the latest shareholding pattern, the Promoters possess 75 percent of the company’s shares, while Domestic Institutional Investors (DIIs) hold 7.42 percent, of which 1.94 percent is held by LIC. Foreign Institutional Investors (FIIs) account for an 8.30 percent stake, with the remaining 9.29 percent held by Retail Investors.
Headquartered in Mumbai, Siemens was incorporated in 1957. The company offers products, integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation.
Written By Vaibhav Patil
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