Siemens: Parent Mar-q results: India inflows and growth healthy :: JPMorgan

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Siemens India
Overweight
SIEM.BO, SIEM IN
Parent Mar-q results: India inflows and growth healthy


• Positive cues for India from Siemens AG results: Parent reported
India order inflows of Euro810mn, up 58% YoY in Mar-q. India
revenues grew 19% YoY excluding currency translation, (20% YoY in
Euro terms) to Euro550mn.

• Siemens India reports on 12th May (Thursday). Over the past 4
quarters, Siemens India revenues have averaged 80% (range of ~77%-
83%) of India topline reported by the parent company. Assuming
historical average is maintained in Mar-q, implied revenue est. of
Rs27.9B (up 25% YoY), is tracking ahead of our published estimate of
Rs26.9bn (implying 21% YoY growth). Similarly historical order
inflows reported by Siemens India have been ~60% of total India inflow
in a quarter. Assuming average holds in Mar-q, SIEM IN inflows could
stand at ~Rs31B (up 37% YoY) [our est. for Mar-q is Rs30bn]. We
expect Siemens India stock to react positively to healthy signs from
parent Mar-q results.
• Siemens stock price has held up well post open offer closed on 13th
April 2011, as expected. Siemens AG results are a pointer that Siemens
India revenues could marginally surprise on the upside. We expect PAT
of Rs2.428bn (up 34% YoY) in Mar-q.