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Siemens hits record high; stock surges 22% thus far in calendar year 2023

Last week, Siemens, as part of a consortium along with Rail Vikas Nigam Limited, received two separate orders from Gujarat Metro Rail Corporation

The logo of German industrial group Siemens is seen in Zurich, Switzerland

The logo of German industrial group Siemens is seen in Zurich, Switzerland

SI Reporter Mumbai

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Shares of Siemens hit a record high of Rs 3,438, gaining 3 per cent on the BSE in Wednesday's intra-day trade. The stock has surged 5 per cent in the past two trading days, surpassing its previous high of Rs 3,400, touched on April 11, 2023.

Thus far in the calendar year 2023, Siemens has outperformed the market by surging 22 per cent, as compared to 1.6 per cent decline in the S&P BSE Sensex.

The company is focused on industry, infrastructure, transport-relatd technology, as well as transmission and generation of electrical power.

Last week, Siemens, as part of a consortium along with Rail Vikas Nigam Limited (RVNL), received two separate orders from Gujarat Metro Rail Corporation Limited (GMRCL). Siemens' share as part of the consortium is Rs 678 crore.

The orders are for Surat Metro Phase 1 (over 40 kilometers covering 38 stations and 2 depots) and Ahmedabad Metro Phase 2 (over 28 kilometers covering 23 stations and 1 depot).

Siemens will provide project management, rail electrification technologies, including advanced power supply and distribution systems. In addition, Siemens will also be providing advanced digital solutions such as Supervisory Control and Data Acquisition (SCADA) solution for both metros.

In January, Siemens had signed a Rs 26,000-crore contract to manufacture 1,200 electric freight locomotives for the Indian Railways. The contract is the single biggest order for Siemens, the company said in a disclosure to the stock exchanges, and will be used for freight transport. The locomotives are specified to haul loads of 4,500 tons at a maximum speed of 120 km an hour, the company said.

Deliveries are planned over a 11-year period and the contract includes 35 years of full-service maintenance. The locomotives will be assembled in the Indian Railways factory in Dahod, Gujarat, the company said.

During the financial year 2022 (January to December), the Company (as part of a consortium) booked a large order to the extent of approximately Rs 900 crore to develop the Metro Corridor for Pune Metro under the public-private partnership route. It won another order from RVNL for signaling and telecommunication of two corridors of the Kolkata Metro Line 3 and 6.

The Government’s commitment to maintain growth by empowering the States to accelerate capital expenditure along with programs such as ‘Atmanirbhar Bharat’, Power for All, Digital India, National Logistics Policy, National Rail Plan and Green Hydrogen Policy, to name a few, are encouraging for the nation’s economy. India is rightly positioning itself to be a high-end manufacturing hub, and incremental capital expenditure is expected to be concentrated on areas where India needs to reduce external dependency on global supply chains, Siemens said in FY22 annual report.

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First Published: Apr 26 2023 | 2:26 PM IST

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