Siemens Ltd's Q4FY18 standalone net profit declines 55.24% yoy to Rs279.20cr : Beats Estimates

The company’s standalone revenue stood at Rs3,939.20cr, up 25.38% yoy and 28.19% qoq.

Nov 19, 2018 02:11 IST India Infoline Research Team

Siemens Ltd Q4FY18

Standalone Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 3,939.20 25.4
EBITDA 418.60 32.0
EBITDA Margin (%) 10.6 53
Net Profit (adjusted) 279.20 [55.2]
***EBITDA margin change is bps
Siemens Limited posted a stellar set of numbers for the quarter ending September 30, 2018, beating the consensus estimates by a significant margin on major counts. Standalone revenues increased by 25.4% yoy to Rs3,939.2cr in Q4FY18 vs. Rs3,141.8cr in Q4FY17, 14.2% ahead of estimates. Operating profit witnessed a strong growth of 32% yoy to Rs418.6cr for the current quarter, 21% higher than the estimates. EBITDA margin rose from 10.1% in Q4FY17 to 10.6% in Q4FY18. However, profit after taxes disappointed, as it more than halved to Rs279.2cr vs. Rs623.8cr in Q4FY17, but beat the estimates by 17.8%.
  • Operating profit in Q4FY18 was mainly driven by strong growth in top-line of the company. However, the same did not translate into stronger margins mainly owing to higher direct costs. In addition, other expenses surged 44.4% to Rs468cr for the current quarter against Rs324.2cr in Q4FY17.
  • Net profit was down for the current quarter, primarily due to exceptional gains of Rs567cr in the same quarter last year.
  • Revenues from Power and Gas increased by 38% yoy to Rs535.4cr in Q4FY18. EBIT grew by 21% yoy to Rs80.8cr and EBIT margin stood at 15.1% (vs. 17.2% in Q4FY17). The segment contributed 13% to the top-line for the quarter under review.
  • Energy Management, which contributed 39.7% to the total revenues, grew by 21.1% yoy to Rs1,628.4cr for the current quarter. EBIT increased by 15.1% yoy to Rs111cr but EBIT margin plunged to 6.8% (from 24.9% in Q4FY17).
  • Building Technologies (4.4% of sales in Q4FY18) and Mobility (8.6% of sales in Q4FY18) posted revenues of Rs179.6cr and Rs355.2cr respectively for the quarter under consideration. EBIT for Building Technologies increased by 10.2% yoy to Rs16.2cr (EBIT margin 9%), while EBIT for Mobility business more than doubled to Rs55.3cr in Q4FY18 (EBIT margin 15.6%).
  • Digital Factory business (16.6% of sales in Q4FY18) saw a growth of 12.1% yoy to Rs680.7cr during the current quarter. EBIT for the segment increased by 38.4% yoy to Rs50.5cr, however EBIT margin declined to 7.4% (from 9.4% in Q4FY17).
  • Revenues from Process Industries and Drives business increased by 20.4% yoy to Rs695.9cr, while EBIT surged 84.1% yoy to Rs44cr for the September quarter of FY18. However, EBIT margin was low at 2.7% (vs. 6.2% in Q4FY17). The segment contributed 17.4% to the top-line for the quarter.
  • The company’s new orders saw strong growth of 38.1% to Rs3,720cr compared to Rs2,694cr in same quarter last year.

Technical View:

Siemens Ltd ended at Rs. 966.60, up by 33.75 points or 3.62% from its previous closing of Rs. 932.85 on the BSE.
The scrip opened at Rs. 935 and touched a high and low of Rs. 978 and Rs. 921.90 respectively. A total of 11,62,059 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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