Siemens India - Parent Jun-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 Jun-q results: India inflows and growth healthy


 Positive cues for India from Siemens AG results: Parent company
Siemens AG (SIEGn.F, Eur90.77, rated OW by J.P. Morgan European
Capital Goods analyst Andreas Willi) reported India order inflows of
Eur621mn, up 23% YoY and India revenues of Eur563mn, up 25% YoY.
Excluding the currency impact, the growth in local currency was even
stronger - 31% in order inflows and 34% in revenues.
 Siemens India reports tomorrow (Friday). Over the past five quarters,
SIEM IN revenues have averaged 83% (range of ~77%-90%) of India’s top
line reported by the parent company. Assuming the historical average is
maintained in Jun-q, implied revenue estimate of Rs30B (up 35% YoY) is
tracking ahead of our published estimate of Rs26.7bn (implying 19% YoY
growth) and the Street estimate of Rs28bn. Similarly, historical order
inflows reported by Siemens India have been ~65% of total India inflows in
a quarter. Assuming the average holds in the Mar-q, SIEM IN inflows could
stand at ~Rs26B (up 30% YoY), in line with our estimate for the Jun-q.
 Siemens is our top pick in the T&D space on a relative basis. Siemens
AG results are a pointer that Siemens India revenues could surprise on the
upside. We expect PAT of Rs2.24bn (up 43.4% YoY) in Jun-q vs. Street at
Rs2.21bn.