Siemens Q3 Review - Margin Led Earnings Miss; Order Inflows Jump Sharply: Motilal Oswal

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Motilal Oswal Report

Siemens Ltd.’s Q3 FY21 revenue more than doubled to Rs 27 billion (like-for like two-year compound annual growth rate at down 4%) and was 8% above our expectation.

Ebitda margin was weaker at 8.4% versus our estimate of 10.3%, driving earnings miss of 16% versus our expectation.

Key positives include strong revenue growth in key segments of smart infrastructure and digital industries.

Order inflows were quite strong at Rs 43 billion, driving order book to a record high of Rs 143 billion.

Siemens has the most diversified portfolio, with offerings across various end markets, which enables it to capture wider growth opportunities.

However, underlying margin (adjusted for one-off cost control measures) has weakened across various segments.

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