Siemens Energy delivered a strong revenue and Ebitda beat in Q4 FY25, though lower than-expected other income resulted in a PAT miss. Revenue stood at Rs 26 billion (+27% YoY), driven by strong growth in the power transmission segment and a healthy order backlog.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Siemens Energy India Ltd. reported a strong set of financials for full year FY25, with an outperformance in revenue and Ebitda. Lower-than-expected other income to some extent offset the strong performance in revenue, resulting in almost in-line PAT performance.
Q4 FY25 performance was impacted by lower-than-expected margin and other income. Order inflows for the full year stood strong at Rs 131 billion vs our estimate of Rs 101 billion, providing strong visibility for both power transmission and power generation segments.
We broadly maintain our estimates and target price of Rs 3,800, based on 60x two-year forward earnings.
We maintain our positive bias for Siemens Energy as we expect the company to benefit from a strong opportunity in power transmission segment, margin improvement, and ongoing capex going forward.
We will revisit our estimates after the analyst meet of the company.
Key risks and concerns
Key risks to our thesis can come from a slowdown in ordering and supply chain issues, thus impacting margin.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
