UBS has maintained a ‘Neutral’ rating on Siemens while revising its target price to ₹8,800 from ₹7,770 after the company posted robust Q4 SY24 results. The performance was led by significant improvements across key financial metrics and a strong boost in other income.
For the September-ending quarter, Siemens reported consolidated revenue of ₹6,461.1 crore, reflecting an 11% YoY increase but slightly below UBS’s estimate of ₹6,526.12 crore. Gross margin improved by 301 basis points to 32.36%, indicating operational efficiencies. EBITDA rose by an impressive 34% YoY to ₹938.1 crore, surpassing expectations by 3%, while the EBITDA margin expanded to 14.52%, up 246 basis points.
The bottom line was a standout, with net profit soaring 45% YoY to ₹830.7 crore, significantly beating UBS’s estimate by 16%. The sharp increase in profit was supported by a 95% YoY rise in other income.
UBS highlighted that the company’s results commentary conveyed optimism regarding government capex, infrastructure spending, and private capex recovery. Siemens’ focus on electrification and industrial growth continues to drive its positive outlook.
