Siemens Limited reported mixed financial results for the first quarter, with strong revenue growth offset by a decline in profitability. The company's performance showcased resilience in its top-line growth while facing challenges in maintaining profit margins.

Revenue Growth

Siemens witnessed a robust increase in its consolidated revenue, which rose to ₹46.50 billion in Q1, marking a significant 24% year-over-year growth from ₹37.60 billion in the same quarter last year. This impressive top-line performance exceeded analyst expectations of ₹42.59 billion, demonstrating the company's strong market position and ability to drive sales growth.

Profitability Challenges

Despite the strong revenue growth, Siemens faced headwinds in its profitability metrics:

Performance Analysis

The divergence between Siemens' revenue growth and profitability metrics suggests that the company may be facing challenges in cost management or experiencing pressure on its margins. While the strong top-line growth indicates robust demand for Siemens' products and services, the decline in profitability highlights the need for potential operational efficiency improvements.

Recent Stock Performance

Following the release of these results, Siemens Ltd shares fell 2.16% to ₹2,965.20. This decline was primarily attributed to the 3.1% decrease in profit after tax to ₹423 crore for the June quarter, compared to ₹437 crore in the same period last year. The company cited lower other income as a factor in the profit drop.

Additional Financial Metrics

• Revenue from operations grew 15.5% to ₹4,347 crore
• Earnings per share decreased to ₹11.89 from ₹12.28
• New orders rose 13% to ₹5,680 crore
• Order backlog increased 8% to ₹42,845 crore
• Profit from operations grew 9.2% to ₹454 crore

Analyst Ratings

Brokerage firms provided mixed ratings following the results:

• Motilal Oswal maintained a neutral rating with a ₹3,300 target price
• Avendus kept a reduce rating with a ₹2,879 target price
• Antique maintained a buy rating and raised its target price to ₹3,892 from ₹3,179

These varied analyst perspectives reflect the complex nature of Siemens' current financial position, balancing strong revenue growth against profitability challenges.

Siemens Limited , a leading technology company focused on industry, infrastructure, and mobility, has announced robust financial results for the third quarter of fiscal year 2025, alongside a significant leadership change in its Digital Industries business.

Financial Highlights

Siemens Limited reported a strong performance for Q3 FY2025, with notable growth in key financial metrics:

However, the company's Profit After Tax (PAT) saw a slight decline of 3.1% to INR 423.00 crore, primarily due to lower other income. Earnings Per Share (EPS) also decreased by 3.1% to INR 11.89 per share.

Business Performance

Sunil Mathur, Managing Director and Chief Executive Officer of Siemens Limited, commented on the company's performance: "The Indian economy has remained resilient despite the uncertainties arising from impending tariffs, bilateral trade agreements and supply chain disruptions. This is reflected in the Company's strong performance across all businesses during the quarter, including two significant order wins in the Mobility business."

Mathur also noted positive developments in key business segments: "While Smart Infrastructure business continued to demonstrate strong execution, the performance at Digital Industries business is now showing signs of recovery indicating that the destocking phase is now largely over."

Leadership Change in Digital Industries

In a significant management update, Siemens Limited announced changes in its Digital Industries business leadership:

• Suprakash Chaudhuri will step down as the Head of the Digital Industries business, effective September 30, 2025, as he takes on a new role within Siemens overseas.
• Swapnil Deosthali has been appointed as the new Head of Digital Industries business, effective October 1, 2025.

Deosthali brings nearly 30 years of experience in Sales, Business Development, and P&L Management to his new role. He has held leadership positions across India, ASEAN, and Europe, and holds a Bachelor of Engineering degree from Government College of Engineering Pune.

Strategic Focus

Siemens Limited reaffirmed its commitment to strengthening its position as a leading technology-focused company. Mathur stated, "Siemens Limited continues its focus on strengthening its position as a leading technology-focused company in Industry, Infrastructure and Mobility combining the real and the digital worlds."

Financial Year Change

The company also announced a change in its financial year, subject to necessary regulatory approvals. The current financial year will be extended to an 18-month period from October 1, 2024, to March 31, 2026. Subsequently, the financial year will follow the April-March cycle.

As Siemens Limited navigates through economic uncertainties and internal changes, the company's strong Q3 performance and strategic leadership appointments indicate its resilience and commitment to long-term growth in the Indian market.