Siemens - Short Cycle Orders Strong; Cost Inflation Persists: Motilal Oswal
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Motilal Oswal Report
After the brief resumption of execution over H1 FY21, the second Covid-19 wave once again disrupted the end markets.
While capex in the automobile sector remained subdued in FY21, end markets such as pharmaceuticals, food and beverages, metro, railways, steel and cement, and power transmission and distrbution saw an uptick in ordering activity.
In the buildings segment, while ordering activity declined for the industry, it stood flat YoY for Siemens Ltd. as it was able to tap certain pockets of growth.
Central government and private capex were robust, although the state government capex is yet to revive. For Siemens, the private sector forms ~84% of its order book, while the government accounts for the remainder.
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