InvestorQ : Can you tell me about why Siemens reported flat profits in the Sep-21 quarter?
Dia Deshpande made post

Can you tell me about why Siemens reported flat profits in the Sep-21 quarter?

Answer
image
swati Bakhda answered.
2 weeks ago
Follow

For the quarter ending Sep-21 (Siemens has an Oct-Sep cycle), Siemens reported 21.13% higher sales at Rs.4,296 crore. For the FY21 ended September, Siemens reported 37.12% higher sales at Rs.13,639 crore. There was a mixed performance by Siemens across its key business verticals.

In terms or revenues, the energy vertical was flat while smart infrastructure saw revenues grow 65.8% at Rs.1,527 crore. Again, the mobility business sales were flat, but Siemens saw 23.8% growth to Rs.784 crore in the digital industries business. In terms of EBIT performance, it was the smart infrastructure that pulled profits down.

Due to the EBIT pressure in the smart infrastructure business, the net profits were just about lower at Rs.321.60 crore. Even the mobility business EBIT came under pressure in the quarter. Due to supply chain constraints, there was an increase in material and inventory costs. Net margins stood at 7.49% in the Sep-21 quarter.

The company has announced dividend of Rs.8 per share on the par value of Rs.2, making it a 400% dividend pay-out by the company. The company saw its net cash flow from operations grow a tad over 100% to Rs.1,422 crore and this was an outcome of a sharp fall in trade payable for the year ended Sep-21.

3 Views