Siemens Q4 Results | Net profit jumps 45% beating forecast; dividend declared

Engineering and automation major Siemens Ltd on Tuesday (November 26) reported a 45.4% year-on-year (YoY) jump in net profit at ₹830.7 crore for the fourth quarter that ended on September 30, 2024.

The company follows the October-September financial year.

In the corresponding quarter of the previous fiscal, Siemens posted a net profit of ₹571.3 crore. The CNBC-TV18 poll had predicted a profit of ₹717 crore for the quarter under review.

The company’s revenue from operations increased 11.2% to ₹6,461 crore against ₹5,807.7 crore in the year-ago period. The CNBC-TV18 poll had predicted revenue of ₹6,526.1 crore for the quarter under review.

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At the operating level, EBITDA surged 34% to ₹938 crore in the fourth quarter of this fiscal over ₹700.2 crore in the corresponding period in the previous fiscal, beating the CNBC-TV18 poll projection of ₹907 crore.

The EBITDA margin stood at 14.5% in the reporting quarter versus 12.1% in Q4 of the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 14% for the quarter under review.

The board has recommended a dividend of ₹12 per equity share of ₹2 each (600%) for the financial year ending September 30, 2024. The dividend, as recommended by the board of directors, if declared at the ensuing AGM of the company, would be paid from February 14, 2025.

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Further, the board has approved further investment of around ₹100 crore for power transformers, in addition to the investment of around ₹360 crore approved on November 28, 2023.

This decision is aimed at catering to the global trend for energy transition and electrification, which has resulted in an increasing demand for grid technology products. This product portfolio would cater to the international market in various countries, based on demand.

This already-announced capacity expansion is likely to be completed by December 2025. The company would be utilising its internal accruals to fund this additional investment, similar to the investment announced in November 2023.

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The strong order book was backed by healthy demand across all business segments while digital industries continued to experience normalisation in demand. Excluding the large 9,000 HP electric locomotive orders from Indian Railways received in FY23, new orders rose by 14% in FY24.

The results came after the close of the market hours. Shares of Siemens Ltd ended at ₹7,245.90, down by ₹104.25, or 1.42%, on the BSE.