Siemens India (SIEMENS) Q2 24/25 earnings summary

Executive summary

• Orders grew 43.5–44% year-over-year, with strong performance in Smart Infrastructure and Mobility, while Digital Industries faced normalization and Low Voltage Motors saw a decline due to weak demand and price pressure.

• Revenue increased 2.5–3% year-over-year, led by Smart Infrastructure, while Mobility experienced temporary project delivery slowdowns and Digital Industries faced demand normalization.

• Profit after tax declined 37% year-over-year, impacted by last year's property sale gain and this year's demerger and merger expenses.

• Siemens Energy demerger effective March 1, 2025; financials now reflect discontinued operations.

• Public CapEx and emerging verticals like semiconductors and data centers are key growth drivers.

Financial highlights

• Q2 FY25 new orders rose 43.5% year-over-year to INR 53.1 Bn; order backlog up 7.2% to INR 415 Bn.

• Revenue increased 2.5–2.6% year-over-year to INR 42.6 Bn; EBITDA margin at 12.4–12.5%, down from 15.3% in Q2 FY24.

• Profit before tax declined 37.6% year-over-year, mainly due to exceptional items; underlying PBT declined 11% year-over-year.

• PAT margin at 9.6% of revenue in Q2 FY25.

• Net cash generated from investing activities for H1 FY25 was INR 31,521 million.

Outlook and guidance

• Public CapEx and emerging verticals expected to drive short-term growth, with strong pipelines in power utilities, railways, and data centers.

• Private sector CapEx is muted but expected to pick up, especially benefiting Digital Industries as inventory normalization continues.

• Management remains optimistic about profitable growth, with a focus on margin-accretive order backlog and export expansion.