Siemens Ltd. | Q1SY15 Result Update | We do not have formal rating on the stock ::IndiaNivesh

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Highlights: Siemens has reported lower top-line and better profitability compared to our estimates in Q1SY15. Company follows Oct-Sep financial year and this is the first quarter of SY15. Net revenue for Q1SY15 has declined by 8.7% to Rs 21,860 mn, reflecting constrained order book position of the company. Company has changed the reporting structure of its segments from Q1SY15 onwards. Company has changed its segment reporting from 4 segments earlier (which were Infra/Cities, Energy, Industry and Healthcare) to 8 segments now (Which are Power & Gas, Energy management, Building Technologies, Mobility, Digital Factory, Process Industries & Drives, Healthcare and Metal Technologies). Each segment of the company has shown revenue decline in Q1SY15 (y-o-y) in the range of (negative) 7.4% to (negative) 64.6%. On back of y-o-y margin expansion across the segment (except in Power & Gas and Metal technologies segment), company has shown impressive y-o-y EBITDA margin expansion of 242 bps to 8.6%. Company has reported exceptional gain of Rs 7,046 mn in Q1SY15 on account of profit in sell of its metal and technologies business. Adjusting for this exceptional item (including its tax effect of Rs 1,766 mn), adjusted net profit of the company has jumped by 94.8% to 1,061 mn.


De-growth in revenue across business segments of the company: Company has changed the reporting structure of its segments from Q1SY15 onwards. Company has changed its segment reporting from 4 segments earlier (which were Infra/Cities, Energy, Industry and Healthcare) to 8 segments now, which are shown in the table below. Company has not yet provided any details about how the earlier 4 segments have been distributed in the new 8 segments of the company. All the segments of the company has reported y-o-y decline in revenue. Healthcare segment has shown the highest fall of 64.6% to Rs 1,409 mn. With 7.4% de-growth, Power and Gas segment has shown lowest y-o-y decline in revenue to Rs 4,494 mn. As per new classification building technologies segment is the lowest business segment of the company with revenue contribution of Rs 702 mn in Q1SY15.

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