Order book, margin gain expectations to drive gains in Siemens

Large order inflow is likely over next 12-24 months such as 4-5 high voltage direct current (HVDC) electric transmission, locos or train sets among others

The stock of Siemens was up 2.5 per cent in trade on a healthy performance in the September quarter, strong order inflows and a promising outlook. The company reported revenues of Rs 6,460 crore which was 11.3 per cent year-on-year (Y-o-Y) growth led by energy (12.4 per cent Y-o-Y to Rs 2,080 crore) and mobility segments (23.9 per cent Y-o-Y to Rs 880 crore). 

 

Gross margins improved 300 basis points Y-o-Y, but it fell 100 basis points quarter-on-quarter (Q-o-Q) to 32.4 per cent while operating profit margins jumped 120 basis points Q-o-Q and 240 basis points Y-o-Y to