By Malvika Gurung
Investing.com -- Shares of the industrial manufacturing company Siemens (NS: SIEM ) declined 5.34% on November 25 to Rs 2,154.85 apiece, after plunging almost 8% to Rs 2,099.40 in the early trade session today due to profit booking.
The company’s shares dipped after the announcement of its earnings report for the September 2021 ending quarter.
While Siemens reported a jump in revenue by 21.1% YoY to Rs 4,296 crore, due to strong performances in the Digital industries and Smart infrastructure segments, its consolidated net profit declined 4.2% YoY to Rs 321.6 crore.
The company’s operating margin too slid 250 basis points to 10.4% in the focused quarter from 12.9% in the same period last year. Its revenue from all segments witnessed healthy growth on a QoQ basis.
Siemens’ decline in PAT comes as a result of an increase in the costs of raw material and logistics. It has recommended a dividend of Rs 8/share of Rs 2 each for the quarter in focus.
Siemens has reported achieving pre-COVID-19 volume levels, as its Order Backlog is at an all-time high of Rs. 13,520 crore, and with the Government increasing investment in infrastructure, along with rising capacity utilisation levels, the industrial manufacturing is confident that the tendering for private sector Capex will rise in the upcoming months.
However, brokerages Nomura Holdings Inc (T: 8604 ) and Motilal Oswal (NS: MOFS ) have maintained a neutral rating on the stock due to lower operating margin and high margin risks in the company’s business.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Siemens is great potential company in the world. Investors will be happy after a year, it will be doubled of money so buy at every dips of the rally.Like 2