Siemens Q2 Review - In-Line Earnings; Margin Surprises: Motilal Oswal
A Siemens AG SP200D electric aircraft engine sits on display. (Photographer: Jason Alden/Bloomberg)

Siemens Q2 Review - In-Line Earnings; Margin Surprises: Motilal Oswal

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Motilal Oswal Report

Siemens Ltd.’s Q2 FY21 revenue growth of ~28% YoY suggests gradual recovery – as the two-year revenue compound annual growth rate came in flat.

Gross margins contracted YoY, while Ebitda doubled – aided by lower employee costs (down 11% YoY) and other expenses (down 33% YoY).

Adjusted for strong cuts in other expenses (7.3% of sales versus 13.8% in Q2 FY20), the margin trend seems to be under pressure and needs monitoring over the next one to two quarters.

Other income declined 33% YoY to Rs 540 million, despite a healthy cash balance, suggesting the impact of declining interest rates on excess cash on the balance sheet.

Click on the attachment to read the full report:

Motilal Oswal Siemens Result Update.pdf


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