Siemens India (SIEMENS) Q4 23/24 earnings summary

Executive summary

• Achieved double-digit growth in revenue and profits for the fourth consecutive year, driven by robust execution, digitalization, and integrated solutions across all segments.

• Siemens Xcelerator platform and a 'one-tech company' approach are central to delivering combined solutions and scaling use cases across industries.

• Annual consolidated and standalone financial results for FY24 were audited and received unmodified opinions, confirming compliance with Indian Accounting Standards.

• The Board approved a scheme to demerge the Energy Business into Siemens Energy India Limited, with completion expected in calendar year 2025, pending regulatory and shareholder approvals.

• A dividend of Rs. 12 per share was recommended for FY24, totaling Rs. 4,273 million.

Financial highlights

• FY24 new orders grew 13.8% year-over-year (excluding large locomotive orders), with major contributions from energy and mobility businesses.

• Revenue increased by 14.4% year-over-year, with consolidated revenue at Rs. 222,397 million and net profit at Rs. 27,181 million.

• EBITDA margin improved to 13.7% (up 100 bps), and profit after tax rose to 13.2% from 10.8% in FY23.

• Q4 FY24 saw new orders up 21% and revenue up 11.3% year-over-year, with EBITDA margin at 14.6%.

• Cash from operations reached INR 21.6 billion, up INR 2.3 billion from prior year.

Outlook and guidance

• Expectation of increased government spending and infrastructure activity in H2, with private sector CapEx anticipated to pick up, especially in new-age technologies.

• Smart Infrastructure and Mobility segments expected to drive growth, while Digital Industries is poised for recovery as private investment and destocking improve.

• The demerger of the Energy Business is expected to reshape the group structure, subject to regulatory and shareholder approvals.

• Management remains confident in India's structural growth story and aims for continued profitable growth across all segments.