Siemens India (SIEMENS) Q4 00/01 earnings summary

Executive summary

• FY01 results held up in recession: sales rose 4% and PBT 2%, while PAT declined on a higher tax charge.

• Operational focus on market share, new products, services and cost control supported profitability; management expected the broader economic upturn no earlier than Oct–Dec 2002.

Financial highlights

• Sales and services were Rs11,572.8m, up 4% YoY; PBT was Rs964.2m, up 2%; PAT fell to Rs687.2m from Rs840.0m.

• EPS was Rs19.49 vs Rs24.11; orders received were Rs10,836m vs Rs12,071m.

• Consolidated sales and services reached Rs13,606.6m; consolidated net profit was Rs796.9m vs Rs1,001.2m and EPS Rs22.60 vs Rs28.73.

• SISL total income rose 26% to Rs2,257.3m; PBT increased to Rs304.5m from Rs227.5m, with Rs37.6m deferred tax benefit and EPS of Rs50.21.

Outlook and guidance

• Management expected meaningful economic recovery no earlier than Oct–Dec 2002; infrastructure and industry were expected to remain stagnant, with any pickup delayed 6–12 months.

• Priorities included growing market share, launching products and applications, expanding services and exports, and raising asset productivity while controlling costs.

• Healthcare, enterprise telecom, T&D, captive power and co-generation were identified as growth opportunities, subject to market and financing conditions.