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Street unhappy over Siemens' plan to sell its low-voltage motor unit

Stock plunges 8.35%; analysts divided over electrical equipment maker's prospects due to high valuations

Siemens
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A logo of Siemens is pictured on a building in Mexico City, Mexico | Photo: Reuters

Devangshu Datta

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The transfer by Siemens India of its low voltage (LV) motor unit to a subsidiary of its MNC parent Siemens AG has been viewed mostly unfavourably by minority investors.

The division generated revenue of Rs 1,060 crore with an EBIT (earnings before interest and tax) of Rs 130 crore in the 2021-22 financial year (FY22). The earnings per share or EPS of this business was estimated to be at around Rs 3.3 in FY22 (Siemens' accounting year is October-September).

The LV motors unit, which was part of the digital industries (DI) segment, represented 29 per cent of overall DI sales

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First Published: May 22 2023 | 9:12 PM IST

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