Siemens India (SIEMENS) Q4 10/11 earnings summary

Executive summary

• FY ended Sep. 30, 2011 sales rose 28% YoY to ₹11,941.9 crore; orders received fell 1% to ₹12,288.6 crore, while base-business orders grew 25% excluding the impact of mega-project awards.

• Operating profit was stable at ₹1,197.4 crore; year-end unexecuted orders rose 2% to ₹13,921.3 crore.

• Energy, Industry and Healthcare performed satisfactorily; a new Infrastructure & Cities sector was created to address urban infrastructure markets.

Financial highlights

• Total income was ₹121,967 million versus ₹94,777 million YoY; net sales and services were ₹119,419 million versus ₹93,152 million.

• PBT was ₹12,749.5 million, up 1.3%; standalone PAT was ₹8,454.3 million, up 2.2% YoY.

• Consolidated PAT was ₹8,677.5 million versus ₹7,577.7 million; consolidated EPS was ₹25.61 versus ₹22.48.

• Proposed dividend was ₹6 per ₹2 equity share, versus ₹5 in the prior year.

Outlook and guidance

• Moderate growth is expected to continue; economic uncertainty, credit and liquidity constraints may postpone new projects and delay existing work.

• Infrastructure investment, energy efficiency, environmentally friendly technology and public- and private-sector spending in power, metals and oil & gas are expected to support demand.

• Energy outlook remained positive over the long term, subject to resolving fuel production, linkages and environmental-clearance constraints.

• Industry demand was expected to continue, with margins under pressure from input and labour costs, inflation and higher interest rates.

• Healthcare demand was expected to benefit from urbanization, insurance penetration, private investment, tier 2/3 expansion and higher government spending.