Siemens Plunges Over 5% Despite Revenue Growth; Brokerages Maintain Neutral Call

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Siemens Plunges Over 5% Despite Revenue Growth; Brokerages Maintain Neutral Call
Credit: © Reuters.

By Malvika Gurung -- 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.

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  • Seeman Thevar @Seeman Thevar
    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

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