Stock Market Today: Shares of siemensThe company, a major player in the heavy power equipment sector, fell 10% in trading on Friday, December 20, hitting a one-month low. 6,868 per share, after the company’s September quarter earnings call. The fall is also the biggest intraday decline since the beginning of June.
The company’s management said private capital expenditure (capex) has not increased significantly across the board. While private capital spending remains strong in sectors such as semiconductors and batteries, it is lagging in traditional technologies, as reported CNBC-TV 18,
Additionally, management noted that the energy business is experiencing strong demand in the transmission segment, driven by the shift toward renewable energy, with the HVDC (High Voltage Direct Current) segment expected to be a key growth driver going forward. Is.
However, Siemens clarified that it is not participating in LCC (low-cost carrier) tenders in India or globally, although it is active in the VSC (voltage source converter) segment.
The report said Siemens India’s digital industry business is currently facing challenges due to semiconductor shortage and some stock emptying by customers.
Margins in the segment declined for the quarter due to pricing pressure and unfavorable product mixAccording to the management, who also said that business is expected to improve in the coming quarters once the stock removal process is completed.
Siemens manufactures and sells a wide range of products including electric motors, generators, transformers, power distribution and control equipment, general purpose machinery and other electrical products in India and internationally. Siemens is a 75% subsidiary of Siemens AG, Germany, which operates in more than 200 countries.
September quarter earnings snapshot
The company, which follows a fiscal year from October to September, reported its quarterly numbers in late November. For the period, it posted revenue 5,894 crore, showing a growth of 11% as compared to It was Rs 5,297 crore in the same quarter last year. The company gave a report profit before tax of above 775 crores It was Rs 534 crore in the same period last year.,
The company received new orders during the quarter 6,164 crore, with strong demand across all business segments. However, digital industries experienced normalization in demand. except the elder Indian Railways received a 9,000 HP electric locomotive order in FY2023, with a 14% increase in new orders for FY2024, according to the earnings filing.
Additionally, the company also announced additional capital expenditure Rs 100 crore for capacity expansion of its power transformer factory at Kalwa. This expansion aims to enhance the product portfolio range. As a result, the total capital expenditure for the power transformer factory at Kalwa is now expected to be above 460 crores First announcement of Rs 360 crore.
Disclaimer: The views and recommendations expressed in this article are those of the individual analysts. These do not represent the views of the Mint. We advise investors to check with certified experts before taking any investment decision.
