Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Healthy topline growth but severe RM cost pressures led to PAT
disappointment in Jun-q. Siemens reported healthy revenue growth of 24.5%
(4.6% ahead of our estimate). However EBITDA margin dipped 180bps YoY to
9% led by higher RM (up 360bps) and employee cost (up 130bps), though other
expenses were lower (down 250bps). 9M EBITDA margin at 12.6% is down
~150bps YoY and broadly reflects similar trend in cost-items. Dip in margins
and sharp increase in depreciation (up 15% QoQ) contributed to slight degrowth
in PAT during Jun-q. Profit of Rs1.55bn (down 0.8% YoY) was well
below our and street estimate (~Rs2.2).
Order inflow growth of ~8% YoY to Rs22.8bn was sharply below
indications from SIE GR results (see our note on Parent Jun-q results). India
inflows reported by Siemens AG were up 31%; a higher proportion of orders
seem to have been received at group level in Jun-q.
Segment-wise takeaways: Except mobility which reported a 29% de-growth in
revenue, topline growth was robust across segments. Both CG and Siemens
results have provided evidence of strong growth in short cycle industrial
products. Energy segment topline grew 22% and healthcare 30%. In the
company press release Dr. A. Bruck, MD mentioned that 'growth continues in
spite of challenges due to RM costs'. Margin pressure in Jun-q was led by power
segment (EBIT margin down 246bps) and healthcare (down 530bps).
While quarterly volatility in margins can be on account of timing mismatch
between cost and revenue recognition, we remain cautious of RM cost
challenges in the sector, especially after bearish guidance given by CG
(EBITDA margin guidance cut by 350-550bps post Jun-q results).
Siemens has outperformed the T&D space by 25%+ over last 12 months.
While we expect relative outperformance vs. T&D peers to continue, we see
limited catalysts for absolute upside from current valuations (26x FY12).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Healthy topline growth but severe RM cost pressures led to PAT
disappointment in Jun-q. Siemens reported healthy revenue growth of 24.5%
(4.6% ahead of our estimate). However EBITDA margin dipped 180bps YoY to
9% led by higher RM (up 360bps) and employee cost (up 130bps), though other
expenses were lower (down 250bps). 9M EBITDA margin at 12.6% is down
~150bps YoY and broadly reflects similar trend in cost-items. Dip in margins
and sharp increase in depreciation (up 15% QoQ) contributed to slight degrowth
in PAT during Jun-q. Profit of Rs1.55bn (down 0.8% YoY) was well
below our and street estimate (~Rs2.2).
Order inflow growth of ~8% YoY to Rs22.8bn was sharply below
indications from SIE GR results (see our note on Parent Jun-q results). India
inflows reported by Siemens AG were up 31%; a higher proportion of orders
seem to have been received at group level in Jun-q.
Segment-wise takeaways: Except mobility which reported a 29% de-growth in
revenue, topline growth was robust across segments. Both CG and Siemens
results have provided evidence of strong growth in short cycle industrial
products. Energy segment topline grew 22% and healthcare 30%. In the
company press release Dr. A. Bruck, MD mentioned that 'growth continues in
spite of challenges due to RM costs'. Margin pressure in Jun-q was led by power
segment (EBIT margin down 246bps) and healthcare (down 530bps).
While quarterly volatility in margins can be on account of timing mismatch
between cost and revenue recognition, we remain cautious of RM cost
challenges in the sector, especially after bearish guidance given by CG
(EBITDA margin guidance cut by 350-550bps post Jun-q results).
Siemens has outperformed the T&D space by 25%+ over last 12 months.
While we expect relative outperformance vs. T&D peers to continue, we see
limited catalysts for absolute upside from current valuations (26x FY12).
No comments:
Post a Comment