Siemens Energy Q4 nos shine; analysts upbeat on strong order book, margins

Siemens Energy India reported a strong set of numbers for full financial year 2024-25 (FY25), with an outperformance in revenue and earnings before interest, tax, depreciation, and amortisation (Ebitda). The company's financials for the July to September quarter (Q4FY25) were also in-line with the market estimates. The company follows an October-September fiscal year.

 

Domestic brokerages Motilal Oswal Financial Services (MOFSL) and Antique Stock Broking have maintained a 'Buy' rating on the stock. 

Meanwhile, on the NSE, the stock opened at ₹3,250, up 2.75 per cent from previous session's close of ₹3,162.9. At the time of writing, the Siemens Energy India stock was trading 0.55 per cent higher at ₹3,180 on the NSE. In comparison, the NSE Nifty50 was trading almost flat at 25,956.60 levels, down by 2.90 points.  READ LATEST STOCK MARKET UPDATES TODAY LIVE

Siemens Energy India financial results

Siemens Energy India's revenue from operations jumped 27 per cent year-on-year (Y-o-Y) to ₹2,646 crore, compared to 2,09 crore in the year-ago period. The company's net profit increased 31 per cent to ₹360 crore from ₹273 crore in the previous fiscal. For the full financial year, the bottomline grew 83 per cent to ₹1,100 crore. 

 

Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased around 25 per cent to ₹479 crore from ₹385 crore. However, Ebitda margins fell 40 basis points to 18.1 per cent due to high raw material costs. 

 

Siemens Energy's order backlog increased 47 per cent Y-o-Y to ₹16,205 crore in FY25. The company announced a dividend of ₹4 per share, subject to approval of shareholders. 

Brokerages on Siemens Energy India

According to analysts at MOFSL Siemens Energy delivered better-than-expected revenue and operating profit for the full year, supported by strong execution. However, net profit was broadly in line with expectations due to lower other income. The Q4FY25 saw slightly weaker margins, which weighed on the quarterly numbers.

 

The brokerage noted that Siemens Energy India reported full-year order inflows of ₹131 billion, far ahead of its estimate of ₹101 billion. This provides strong visibility for both its power transmission and power generation businesses.   ALSO READ | Blue Star newly rated 'Neutral' at Motilal Oswal; 9% upside seen 

MOFSL has maintained its target price of ₹3,800 and kept a positive view on the stock, citing growing opportunities in the transmission segment, margin improvement and ongoing capex. It plans to revisit estimates after the company’s analyst meet.

 

Similarly, Antique Stock Broking also noted that order inflows remained steady at ₹2,350 crore for the quarter, while the order book grew a strong 47 per cent year-on-year to ₹16,205 crore. 

 

The brokerage said Siemens Energy’s 10 advanced manufacturing facilities position it well to tap business opportunities in India and neighbouring South Asian markets. With rising power demand, public capex, industrial activity and data-centre expansion, the company is scaling up its transformer and switchgear capacity and has opened a new industrial steam turbine service centre in Raipur.

 

Antique maintained a 'Buy' rating on the stock with a target price of ₹3,416, valuing the stock at 65x FY27 earnings. It expects Siemens Energy India to deliver a revenue CAGR of 22 per cent and earnings CAGR of 30 per cent between FY25 and FY27.

 

(Disclaimer: Target price and stock outlook has been suggested by Motilal Oswal Financial Services and Antique Stock Broking. Views expressed are their own.)