Siemens March quarter results: Doubling of new orders lends comfort

After ABB India’s results, the share price of Siemens India had rallied about six per cent since Monday, in anticipation of good March quarter results. These did bring much needed visibility on order inflow and implementation but the numbers appear distorted due to adoption of the new IndAS accounting norms.The March quarter (the second or Q2 for Siemens India, as it follows an October to September accounting year) saw order inflow increase by 96 per cent over a year before to Rs 4,725 crore, including an Rs 1,682 crore one from Power Grid. The current order book is estimated at Rs 15,525 crore and provides earnings comfort of 18 months.While this is on the positive side, there is some surprise on earnings. Despite revenue for continuing operations growing at 24 per cent to Rs 2,983 crore, the net profit growth remained flat at Rs 186.3 crore over the year-before period. A large part of the earnings miss could be attributed to a nearly 50 per cent year-on-year increase in other …


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