Siemens Ltd. share price target

SIEM has identified three broad trends in India: high public spending on infrastructure, pent-up private capex and rising decarbonisation

Strong execution-led revenue growth of 14% YoY together with 190bps EBITDA margin expansion in Q3

Siemens reported 14% YoY revenue growth, EBITDA margin improvement of 160bps YoY, EBITDA growth of 33% YoY and PAT growth of 43% YoY in Q3FY23 – all in all a good set of results and in line with consensus estimates. Order inflow growth was muted at 6% YoY. Book to bill ratio came in at 2.6x (vs 1.2x last year) aided by strong order inflow for locomotives.

Low-voltage and geared motors business divested to parent for Rs 22bn (2.1x revenue)

Robust execution and margins in Q2 led by smart infrastructure and mobility segments; base order inflow at Rs 57bn

Similar to its closest peer, ABB (which posted strong EBITDA margin of 15% in the latest quarter), Siemens (SIEM) has reported standalone EBITDA of Rs5.5bn (+66% YoY) in Q1FY23, which was ahead of our and street’s estimates. This was led by 13% YoY revenue growth and 482bps YoY expansion in EBITDA margin to 15.1%.

Strong Q1 beat aided by margin expansion across segments. C&S Electric turns a corner