Siemens Announces Record Q4 2024 Earnings and Strategic Investments
Siemens Ltd recently released its Q4 results for the September 30, 2024 financial year. It shows better performance than before. Its profit for the financial year also rose to ₹830.7 crore, a 45.41% YoY growth, while the overall revenue rose 11.25% YoY to ₹6,461.1 crore.
Profit and Revenue Growth Expectations
Healthy demand and operational efficiency helped Siemens exceed market estimates with its Q4 profit. The company also reported a remarkable 43.79 % increase in profits and 24.17 % in revenue compared with the previous quarter. However, the ₹830.7 crore profit reported exceeded the CNBC-TV18 poll projection of ₹717 crore. Similarly, revenue estimates of ₹6,526.1 crore were missed by Siemens, which still delivered ₹6,461.1 crore, representing steady growth.
Among other things, EBITDA rose 34% YoY to ₹938 crore, which also exceeded the consensus of ₹907 crore. Cost management and productivity improved, as the EBITDA margin increased to 14.5% from 12.1% in the same quarter last year. However, operating income grew steadily, 40.68% quarter over quarter and 37.15% year over year.
Siemens recorded impressive growth in revenue and profits, although Selling, General, and administrative (SG&A) expenses for the fourth quarter of 2017 rose by 8.65% on a quarterly basis and by 24.65% on a year-on-year basis, indicating higher operational costs. Nevertheless, the company had a robust financial status to recommend a final dividend of ₹12 per equity share (600%) for the year. The payment will occur on February 14, 2025, with the shareholders’ approval at the Annual General Meeting.
The company invested another ₹100 crore in power transformers to further its capacity expansion plans. This is an internally funded capital investment aimed at satisfying the global market demand for grid technology products with the project’s completion scheduled for December 2025.
Order Book and Market Performance
Siemens revealed that most of its business segments received significant demand, which helped strengthen its order book. The main business segment’s New orders increased to $2,641.9m from $2,314.0m. This was helped by an adjusted 14% growth in FY24, except for a massive order from Indian Railways received in FY23.
Nevertheless, the reported results show a strong performance. Since the news came out, Siemens shares have decreased by 1.42% to ₹7,245.90 on the BSE. But the stock still holds its ground with a YTD return of 79. 95% and a 52-week high of 8129.9. Analysts have made several recommendations on Siemens, including “Hold” and “Buy” recommendations.
