Siemens India (SIEMENS) Q4 02/03 earnings summary

Executive summary

• FY ended Sep. 30, 2003: standalone sales Rs 14,245m, up 10% YoY; PBT Rs 1,968m, up 51%; PAT Rs 1,394m, up 60% and a record.

• New orders rose 45% to Rs 16,754m; unexecuted orders at year-end increased 43%, supporting expectations for another strong year.

• Operating profits rose 28%; reported EPS increased 61%, while EPS growth was ~27% excluding the one-time gain on a cancelled order.

Financial highlights

• Consolidated sales and services reached Rs 17,191m versus Rs 15,278m; PBT was Rs 2,237m versus Rs 1,505m; net profit was Rs 1,658m versus Rs 916m.

• Standalone operating cash flow was Rs 645m; cash and bank balances closed at Rs 2,585m.

• All standalone business segments grew satisfactorily; Power turnover declined on a prior-year HVDC project booking comparison.

Outlook and guidance

• The outlook was positive on improving domestic demand, GDP growth projected above 6.5%, infrastructure investment and economic reforms; strategy centered on profitable growth, new products and services, cost improvement and greater global-network participation.

• Power Generation planned to emphasize renovation, maintenance, automation and services as major greenfield projects remained limited; benefits from new capacity were expected over the medium term.

• National Grid development and the Electricity Act were expected to create Power Transmission and Distribution opportunities, but slow implementation and utility finances remained concerns.

• SISL planned to expand exports and offshore development for global divisions, alongside domestic growth in banking, financial services, insurance, healthcare and telecom.