Siemens Q2 Results: Revenue Surges 16% Despite 42% Drop in Net Profit

Siemens , a prominent player in the Indian industrial sector, has released its Q2 financial results, showcasing a mixed performance with significant revenue growth accompanied by a substantial decline in net profit.

Key Financial Highlights

Metric	Q2 (Current)	Q2 (Previous Year)	Year-over-Year Change
Revenue	₹51.71 billion	₹44.57 billion	+16%
Net Profit	₹4.85 billion	₹8.31 billion	-42%
EBITDA	₹6.17 billion	₹5.45 billion	+13%
EBITDA Margin	11.93%	12.22%	-29 bps

Revenue Growth

Siemens reported a robust 16% year-over-year increase in revenue, reaching ₹51.71 billion in Q2. This significant growth indicates strong demand for the company's products and services across its various business segments.

Profit Decline

Despite the impressive revenue growth, Siemens experienced a substantial 42% decrease in net profit, which fell to ₹4.85 billion from ₹8.31 billion in the same quarter of the previous year. This decline in profitability may raise concerns among investors and analysts about the company's cost management and operational efficiency.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement, growing to ₹6.17 billion from ₹5.45 billion year-over-year. However, the EBITDA margin experienced a slight compression, decreasing to 11.93% from 12.22% in the previous year's corresponding quarter.

Implications for Investors

The mixed Q2 results present a complex picture for Siemens shareholders and potential investors. While the strong revenue growth is a positive indicator of the company's market position and demand for its offerings, the significant drop in net profit may raise questions about the company's ability to translate top-line growth into bottom-line results.

Investors may want to closely monitor Siemens' future performance to see if the company can improve its profitability while maintaining its revenue growth trajectory. The slight decline in EBITDA margin also warrants attention, as it could indicate increasing operational costs or pricing pressures in the market.

As Siemens navigates these financial challenges, stakeholders will likely look for insights into the company's strategies for cost management, operational efficiency, and maintaining its competitive edge in the industrial sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.53%	+5.66%	+7.47%	+2.10%	-10.61%	+348.65%

Siemens Limited , a leading technology company, has reported robust financial results for the fourth quarter of fiscal year 2025, demonstrating significant growth in revenue and new orders despite challenges in certain segments.

Revenue and Profit Performance

For Q4 FY2025, Siemens Limited posted a consolidated revenue of INR 5,171.00 crore, marking a substantial 16% increase compared to the same quarter in the previous year. The company's profit after tax (PAT) stood at INR 485.00 crore, which, while lower than the previous year's figure, reflects a strong operational performance when accounting for one-time gains in the prior period.

Order Book and Business Segment Performance

The company's new orders rose by 10% to INR 4,800.00 crore, indicating strong market demand for Siemens' products and solutions. The order backlog grew by 6% to INR 42,253.00 crore, providing a solid foundation for future revenue growth.

Sunil Mathur, Managing Director and Chief Executive Officer of Siemens Limited, commented on the results: "Siemens Limited delivered a robust performance this quarter, with a 16% surge in Revenue, driven by strong performance in our Mobility and Smart Infrastructure businesses."

However, he noted that "Digital Industries volumes were impacted due to a lower reach in the order backlog from the previous year and muted private sector Capex."

Profitability and Market Outlook

The company's profit from operations increased by 14.6% to INR 566.00 crore, demonstrating improved operational efficiency. The slight decrease in overall profit after tax can be attributed to a one-time gain of INR 69.00 crore from the sale of property in Q4 FY2024, which was not repeated in the current quarter.

Mathur expressed cautious optimism about future prospects, stating, "While Government spending in Capex in Infrastructure continues, with recent measures to boost consumption through easing of Income Tax rates and GST reforms, we have seen an uptick in consumption during the festive period. We remain cautiously optimistic that this trend will continue in future quarters ultimately leading to a pickup in private sector Capex."

Financial Year Change

Siemens Limited has approved a change in its financial year structure. The current financial year will be extended to an 18-month period from October 1, 2024, to March 31, 2026. Subsequently, the company will follow an April-March financial year cycle.

Conclusion

Siemens Limited's Q4 FY2025 results showcase the company's resilience and ability to grow in a challenging economic environment. With a strong order book and strategic focus on high-growth segments like Mobility and Smart Infrastructure, Siemens is well-positioned to capitalize on future opportunities in the Indian market.

As the company transitions to a new financial year structure, investors and stakeholders will be keenly watching how Siemens navigates the evolving economic landscape and leverages its technological expertise to drive sustainable growth.