Siemens Q4 Review - Cost Pressures Impact Margin: ICICI Securities
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ICICI Securities Report
Siemens Ltd.’s Q4 FY21 revenues grew 14% YoY to Rs 40 billion on a low base, led by 37% YoY growth in ‘smart infrastructure’ segment to Rs 12.6 billion and 24% YoY growth in digital industries segment to Rs 7.8 billion.
Order intake was up 5% YoY to Rs 33.7 billion during the quarter and the orderbook remained strong at Rs 135 billion, providing growth visibility.
Cost pressures impacted the Ebitda margin, which contracted 215 basis points YoY to 10.7%.
Siemens' order pipeline is strong as the private sector is increasingly investing in automation and efficiency-related solutions.
Factoring-in the better execution in Q4 FY21, we marginally raise our earnings estimates by 4.4% and 4.5% for FY22E and FY23E, respectively.
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