Siemens India (SIEMENS) Q4 01/02 earnings summary

Executive summary

• FY02 delivered broad-based improvement despite recessionary conditions; all divisions were profitable for the first time in six years, and PBT exceeded 10% of sales for the first time in 19 years.

• Standalone orders rose 7% to Rs 11,547 million and sales rose 12% to Rs 12,905 million; PBT increased 35% to Rs 1,304 million and PAT increased 26% to Rs 866 million.

• Productivity gains, process optimization, asset management and a policy of accepting profitable orders supported improved results and a cash-surplus position with relatively low borrowings.

Financial highlights

• Standalone FY02 net sales and services were Rs 12,905.4 million versus Rs 11,572.8 million; PBT was Rs 1,304.4 million versus Rs 964.2 million, and PAT was Rs 865.6 million versus Rs 687.2 million.

• Standalone EPS rose to Rs 26.10 from Rs 19.49; consolidated revenue was Rs 15,277.6 million, net profit Rs 916.4 million and EPS Rs 27.63.

• Consolidated PBT was Rs 1,505.0 million versus Rs 1,126.7 million; profit after tax before minority interest was Rs 1,018.1 million versus Rs 887.3 million.

• Operating cash flow was Rs 1,096.4 million standalone and Rs 1,681.5 million consolidated; year-end cash and bank balances reached Rs 2,026.8 million standalone and Rs 2,585.7 million consolidated.

Outlook and guidance

• FY03 markets were expected to remain sluggish; strategy emphasized profitable orders, market-share gains, new products and services, stronger customer reliability and speed, and lower operating costs.

• Power generation was expected to remain flat for two to three years; focus areas were automation, services and global design work. T&D opportunities depended on power reforms and improved utility finances.

• Healthcare outlook remained positive; enterprise networks expected growth opportunities from communications convergence, while industrial markets were forecast to stay subdued.

• SISL planned to expand exports, pursue higher-growth verticals and establish a Northern Europe liaison office; the outlook remained exposed to weak European and US conditions.