Siemens India (SIEMENS) Q4 03/04 earnings summary

Executive summary

• FY ended 30 Sep 2004: new orders rose 80% to Rs30,142m, sales increased 26% to Rs17,900m and PBT grew 17% to Rs2,299m.

• Growth was driven by Power, Transportation and Industry; unexecuted orders increased 136% YoY, supporting the topline outlook.

• Factory productivity, cost and process improvements, exports and demand across infrastructure and industry supported performance.

Financial highlights

• Net sales and services were Rs17,900.22m vs Rs14,245.38m; PAT was Rs1,513.73m vs Rs1,393.82m, up 9% YoY.

• PBT reached Rs2,298.96m vs Rs1,967.77m, up 17%; EPS was Rs45.68 vs Rs42.06.

• Operating income, adjusted for non-recurring items, rose 51% to Rs1,661m from Rs1,103m.

• Consolidated sales and services were Rs22,456m vs Rs17,191m; consolidated net profit was Rs1,694m vs Rs1,658m.

• Operating cash flow increased to Rs2,019m from Rs596m; cash and cash equivalents ended the year at Rs4,310m.

Outlook and guidance

• FY04-05 outlook was supported by expected GDP growth of 6–6.5%, manufacturing expansion, infrastructure investment and a stronger project pipeline.

• Planned Rs1bn investment targeted factory upgrades, capacity expansion and software development; further investment in manufacturing and product development was anticipated.

• Power Generation expected new-project and renovation/service growth; PTD expected opportunities from grid expansion, private transmission investment and Middle East exports.

• SISL expected growth above the IT market and planned a Bangalore center adding 700–800 work places; transportation margins were expected to remain pressured.