Summary

  • Siemens Limited is the flagship listed company of Siemens AG in India.
  • Siemens Limited is a technology company focused on industry, infrastructure, digital transformation, transport as well as transmission and generation of electrical power.

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Company Overview

Siemens India Limited (NSE:SIEMENS) is a technology company focused on industry, infrastructure, digital transformation, transport as well as transmission and generation of electrical power. It is the flagship listed company of Siemens AG in India. The company’s business structure is well oriented in meeting the needs of the industry in improving efficiency, quality, flexibility and speed. With its wide-ranging portfolio, market-oriented organization structure, global technology leadership and strong local competence, the company is in a good position to partner with the country in sustainable growth.1

Siemens' long-term commitment in India began in 1867, when the company’s founder Werner von Siemens personally supervised the setting up of the first telegraph line between London and Calcutta. Today, Siemens has a strong manufacturing footprint across the country, various Centres of Competence and R&D centres as well as a nationwide sales and service network.

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Plant Locations

  • Aurangabad
  • Bangalore
  • Goa
  • Gurgaon
  • Hyderabad
  • Kalwa
  • Kharagpur
  • Motor Works Kalwa
  • Nashik
  • Puducherry
  • Transformer
  • Vadodara
  • Winergy

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Business Overview

The macro-economic environment in the country showed steady signs of revival following a slowdown in 2020 due to countrywide lockdowns resulting from the COVID-19 pandemic. The continued efforts of the Government to accelerate vaccination coverage among citizens also has provided further confidence to Indian Industry.2

During financial year 2021, New Orders increased by 32.4 percent at Rs 142,344 million, compared to Rs 107,517 million in financial year 2020. Sales (excluding Other operating revenues) were increased by 33.1 percent to Rs 127,559 million, compared to Rs 95,808 million in financial year 2020, while Profit after Tax (PAT) was at Rs 10,627 million compared to Rs 7,574 million in financial year 2020. The Company’s Operating Profit Margin (%) and Net Profit Margin (%) for financial year 2021 was 9.7 and 8.3 compared to 7.7 and 7.9, respectively, in financial year 2020. The Company’s Debtors Turnover stood at 3.8 times while Inventory Turnover was at 6.6 times.

Digital Industries

Digital Industries provides technologies for the automation and digitalization of the discrete, hybrid and process industries, supporting their digital transformation. Its portfolio consists of industrial software, automation & drive technologies for optimizing the manufacturing value chain, covering product design, production planning, engineering, execution and after-sales services. Its ‘Digital Enterprise Suite’ offers flexibility and efficiency to various discrete industries, general engineering segments and OEMs engaged in machine tools, printing, packaging and electrical panel manufacturing. The business environment in which the Business operates is primarily driven by core sector industries.

For financial year 2021, the New Orders increased by 51.6 percent to Rs 30,007 million, Sales (excluding Other operating revenues) increased by 57.5 percent to Rs 29,173 million, while Profit from Operations was Rs 2,330 million compared to Rs 1,156 million in the previous year.

Energy

The Company’s Energy Business provides fully-integrated products, solutions, and services across the energy value chain of oil and gas production, power generation and transmission to make society carbon neutral. Its offerings include sustainable products, solutions and services that make fossil energy greener. It also helps deliver decentralized, flexible power; manage the complexities of the grid; improve and de-risk aging assets; and connect supply and demand through storage technologies such as grid-scale batteries and Power-to-X technologies. The Business has a broad customer base that includes oil and gas, utilities, independent power producers, engineering, procurement and construction companies (EPCs), transmission system operators, and industrial companies in sectors such as mining and chemicals.

Among the highlights, the Company commissioned India’s first high-voltage direct current (HVDC) link featuring voltagesourced converter (VSC) technology. The link connects Pugalur in Tamil Nadu to Thrissur in Kerala. It also announced an order from Cochin Shipyard Limited to implement advanced marine solutions for India’s first fleet of 23 boats equipped with electric propulsion and battery integrated technology. The Company also announced orders for advanced power transmission equipment with integrated digital technologies to steel manufacturers from Jalna MIDC belt, Maharashtra – Icon Steel, Geetai Steels and Gajkesari Steels & Alloys. The installation includes state-of-the-art 132 kilovolts Gas Insulated Switchgears which have a modular design and will enable increased efficiency, reduced operational costs and ensure safe operations even under extreme environmental conditions. The Company has also partnered with Power Grid Corporation of India Limited (POWERGRID) to commission Static Synchronous Compensator (STATCOM) solutions at POWERGRID’s substations at Bikaner, Fatehgarh and Bhadla. The STATCOM will be integrated with voltage-sourced converter (VSC) technology which offers high economical and technical flexibility through its modular design.

For financial year 2021, the New Orders increased by 19.4 percent to Rs 51,144 million, Sales (excluding Other operating revenues) increased by 18.8 percent to Rs 46,898 million, while Profit from Operations was Rs 5,918 million compared to Rs 4,014 million in the previous year.

Smart Infrastructure

The Company’s Smart Infrastructure (SI) business intelligently connects energy systems, buildings, and industries, enhancing the way people live and work and significantly improving efficiency and sustainability. The business works with customers and partners to create an ecosystem that intuitively responds to the needs of people and helps better utilization of resources. SI helps its customers to thrive and communities to progress and support sustainable development. This is achieved with help of a broad portfolio spanning across grid control & automation; low and medium voltage power distribution, switching and control; building automation, fire safety and security, HVAC control and energy efficiency solutions. The portfolio coverage includes supply of products and systems to providing solutions and digitalization & service offerings.

Among the highlights, the Company closed the acquisition of C&S Electric Limited after receiving the approval of Competition Commission of India on August 20, 2020, and the successful completion of further closing steps during the financial year 2021. The acquisition is aimed at addressing the rising demand for low-voltage power distribution in India and some export markets in addition to expanding the SI portfolio for customers. This will bolster the Company’s portfolio not only in India, but also for export to competitive international markets in line with its growth strategy. Another key milestone for the Company is the joint announcement with Tata Power Delhi Distribution Limited of the successful deployment of Smart Metering Technology for over 2 lakh smart meters in North Delhi.

For financial year 2021, the New Orders increased by 24.2 percent to Rs 40,385 million, Sales (excluding Other operating revenues) increased by 51.5 percent to Rs 38,889 million, while Profit from Operations was Rs 2,982 million compared to Rs 1,013 million in the previous year.

Mobility

The Company’s Mobility business offers intelligent and efficient mobility solutions and freight transportation covering the entire gamut of Rail infrastructure comprising signaling and electrification and Rolling Stock components and systems. This is complemented by customer services across all technologies as well as turnkey solutions.

The Company’s Mobility business continued expansion of its Metro footprint too by delivering state-of-the-art electrification technologies systems for the Kolkata Metro Phase 1 and 2. It also provided cutting-edge automated train technology systems for Phase 2 of Bengaluru Metro. Among other highlights were the electrification of more than 1,000 kms of Mainline Railways, signaling systems for Dedicated Freight Corridor and contracts for maintenance of Mumbai EMU from Central Railways, the Delhi Airport Metro Extension Line and the Extension line of 20 kms for Rail Vikas Nigam Limited.

For financial year 2021, the New Orders increased by 62.8 percent to Rs 14,173 million, Sales (excluding Other Operating Revenues) reduced by 2.3 percent to Rs 8,217 million, while Profit from operations was Rs 817 million compared to Rs 953 million last year

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Financial Highlights

The Turnover of the Company was Rs 131,045 million for the year ended 30th September, 2021 as compared to Rs 105,407 million in the previous year. The Company’s Profit from Operations for the year ended 30th September, 2021 was Rs 12,684 million as compared to Rs 7,387 million in the previous year.

The Profit after Tax for the year ended 30th September, 2021 was Rs 11,030 million as compared to Rs 7,565 million during 30th September, 2020.

Acquisition of C&S Electric Limited

On 1st March 2021, Company acquired 99.22% (approximately) equity shares of C&S Electric Limited from its promoters, for an aggregate consideration of Rs 21,000 million on a cash free / debt free basis on terms and conditions that are mutually agreed between the parties to the transaction.

Sale and transfer of Mechanical Drives business

On 1st January 2021, the Company sold and transferred its Mechanical Drives business as a going concern on a slump sale basis to Flender Drives Private Limited for a consideration of Rs 3,759 million (after adjusting the consideration of Rs 4,400 million for changes in net current assets and capital expenditure as per the terms and conditions agreed between the parties).

Dividend

The Board of Directors has recommended a dividend of Rs 8 per equity share having face value of Rs 2 each, subject to the approval of the Members at the 64th Annual General Meeting. In the previous year, the Company paid a Dividend of Rs 7 per equity share of Rs 2 each.

Siemens Q1 results

Feb 04, 2022; Siemens reported 15 per cent dip in consolidated net profit at Rs 250.8 crore for December quarter 2021. The company had logged a net profit of Rs 295.5 crore in the year-ago period, a BSE filing stated.3

Total income rose to Rs 3,610 crore in the quarter from Rs 2,983.3 crore in the same period a year ago.

Total expenses also rose to Rs 3,272.5 crore from Rs 2,623 crore.

The company follows October to September financial year.

During the quarter, Siemens registered revenue from continuing operations at Rs 3,197 crore, 11.8 per cent increase over the year-ago period, a company statement said.

New orders from continuing operations stood at Rs 5,300 crore, a 65.3 per cent increase over the same period last year.

The company's order backlog stands at Rs 15,575 crore. Profit after tax from continuing operations was at Rs 245 crore, down 6.5 per cent over the same period last year, it stated.

"All its businesses demonstrated very strong growth. New orders booked in the quarter included approximately Rs 900 crore booked for the electrical and mechanical system works of the Pune Metro Rail Line 3 corridor from Hinjewadi to Shivajinagar.

"The company is executing this order as part of a consortium, together with Siemens AG, Siemens Mobility GmbH and Alstom Transport India Ltd," said Sunil Mathur, Managing Director and Chief Executive Officer, Siemens.

He explained that while revenues were marginally impacted due to delays in offtake by customers on account of COVID-19 and supply chain challenges resulting from global shortage of semiconductors, profit was impacted due to continuing increases in commodity prices and lower forex gains than in the previous year.

However, he stated,"we continue to be cautiously optimistic about the increase in demand across all its businesses."

References

  1. ^ https://new.siemens.com/in/en/company/about.html
  2. ^ https://assets.new.siemens.com/siemens/assets/api/uuid:6f61a005-d04f-47b7-95ff-82cb7d28e8de/AnnualReport2021.pdf
  3. ^ https://economictimes.indiatimes.com/markets/stocks/earnings/siemens-q1-results-net-profit-drops-15-to-rs-250-cr/articleshow/89352542.cms
Tags: IN:SIEMENS
Created by Asif Farooqui on 2022/02/07 13:26
     

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